Landlords should be penalised for leaving main street properties vacant, says a Sydney mayor proposing a "carrot and stick" approach to reviving the waning fortunes of some of the city's well-known shopping strips.

Leichhardt mayor Darcy Byrne is calling for a range of legislative changes to allow rates to be increased and tax concessions reduced for landlords who leave their shop fronts empty unnecessarily.

"In both Norton Street, Leichhardt, and Darling Street, Balmain, our main street shopping centres have been losing their vibrancy with fewer people visiting and more empty shopfronts than before," Councillor Byrne said.

"This is a serious challenge and local businesses are telling us that extraordinary and sometimes unjustified rental costs for businesses are a big part of the problem."