The retail sector may be moving to the next stage in the cycle of distress resolution. In the second quarter of the year, the volume of new retail centers entering distress fell to $1.6 billion, the lowest figure since the third quarter of 2008, according to Real Capital Analytics (RCA), a New York City-based research firm.

At the end of June, the level of outstanding distress for U.S. retail properties was $26.7 billion, only 3% higher than a year earlier.

RCA’s definition of distress includes properties that have been delinquent on their mortgage payments, defaulted on their loans, have been foreclosed on, experienced an owner bankruptcy or are in lender REO.

At the same time that the number of new retail properties entering distress has begun to taper off, resolutions have been on the rise. In some cases, lenders’ improved financial state has allowed them to realize the losses from bad real estate bets.

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