Retail landlords are determined to hold the line on the basic structure of leases, which guarantees them annual rental increments, after conceding ground to tenants upfront on new deals struck following the disruption of COVID-19.

Major ASX-listed landlords such as Scentre, the operator of Westfield malls, and Vicinity Centres, have been striking new lease agreements at about 13 per cent lower as their tenants recover from the turmoil of the pandemic.