Shopping centre landlords face increasing pressure from tenants to adopt turnover-style rent agreements as the switch to online shopping accelerates, according to an S&P Global Ratings report.

At the same time, major mall owners – who range from listed players such as Westfield operator Scentre and Vicinity Centres to unlisted owners including investment platforms QIC and ISPT – are grappling with the prospect of softer demand for space as retailer defaults increase and large international brands reduce their footprints.

The "rent war" that broke out last year as retailers shut down during the height of the pandemic triggered a broader debate over whether leases could be better adjusted to accommodate modern shopping habits as consumers turn increasingly online.