Temporary leases please U.S. malls, retailers

* Short-term leases gaining new takers in downturn

* Strategy "win-win" for both retailers and landlords

* Temporary leases often place-holder for longer deals

By Alexandria Sage

LAS VEGAS, May 21 (Reuters) - Small, nimble retailers are taking advantage of the recession and larger rivals' woes as they move into abandoned U.S. store fronts with short-term leases negotiated at a discount.

The strategy is growing in the current downturn, retailers and real estate professionals say, an attractive option for landlords in secondary shopping centers trying to fill vacantstorefronts and retailers previously denied those locations.

"It's absolutely a win-win," said Don Wood, chief executive of Federal Realty Investment Trust (FRT.N: Quote, Profile, Research). "In this kind of market there's more space, there's more activity, so you'll see more of it."

Simply Fashion Stores, an apparel chain catering to black women with stores in 22 southern and central U.S. states, has benefited from landlords willing to offer six-month to three-year leases, rather than the longer terms that have historically been the norm.

At the International Council of Shopping Centers' RECon retail real estate convention this week in Las Vegas, a large sign at the Simply Fashion's booth read, "Got Vacancies? We can fill your vacancy problem."