Vacancy rates for commercial properties rose this year in three of the four provinces, as compared to the previous year.

The commercial vacancy rate nationally increased by 0.2 percentage points to 13.5% in the second quarter of the year, according to the latest GeoView Commercial Property Bulletin from GeoDirectory and EY-DKM Economic Advisory Services, the third consecutive Q2 in which the rate has increased.

Vacancy rates rose in 19 counties, with only three showing a decline, while there is continued evidence of an east-west divide, with the vacancy rate rising to 17% in Connacht while Leinster remained unchanged at 12.4%.

Sligo recorded the highest commercial vacancy rate in the country at 19.3%, while Meath registered the lowest at 10.1%, while an analysis of ten-year trends shows a 12% decrease in the number of banks and credit unions in the main urban areas and a 28% increase in the number of supermarkets.

The report authors say that it’s too early to gauge the impact of Covid-19 on commercial property, stating: “With a Europe-wide recession predicted and working from home to become more commonplace, it will likely be 2021 or 2022 before the full impact of Covid-19 on commercial property trends becomes apparent.”

In Association with

Properties temporarily vacant due to Covid-19 were excluded from the data. The total stock of commercial properties was 211,200 in June, with 28,500 listed as vacant.

Increases in commercial vacancy rates were recorded in three out of four provinces, with only Leinster (12.4%) remaining unchanged. The five counties with the highest vacancy rates were all in Connacht — Sligo, at 19.3%, had the highest rate, followed by Leitrim (17.1%), Mayo and Roscommon (16.6% each) and Galway (16.6%).

Meath at 10.1% had the lowest commercial vacancy rate in the country, while the rate in the capital stood at 12.2%.

Edenderry in Co Offaly was the town with the highest vacancy rate at 29.2%, followed by Ballybofey, Co Donegal  at 29% and Kilrush, Co Clare at 25.9%. Despite an increase of 1.1 points, Greystones in Co Wicklow was once again the town with the lowest commercial vacancy rate — 6.9%.

East West Disparity

GeoDirectory chief executive Dara Keogh (pictured) said: “This is the third report in a row in which the national commercial vacancy rate has increased compared to the previous year.  We can expect to see further significant changes in the coming years with the economic impact of Covid-19, international tourism in significant decline, the risk of a no-deal Brexit on the table and working from home becoming more prevalent. 

“Our analysis of ten-year property trends also provided some interesting data. While online banking appears to have resulted in a reduction in the number of physical banks and credit unions, perhaps surprisingly the number of travel agents and cinemas has remained stable.”

EY-DKM director Annette Hughes stated: "With counties on the west coast particularly dependent on tourism, it is perhaps not surprising that the widening east-west gap evident in previous reports remains. As the full impacts of Covid-19 become apparent, it could lead to an even greater disparity between the east and west, and urban and rural areas, in terms of vacancy rates in these sectors in years to come.”

The full report is here.