The commercial vacancy rate stood at 13.9% in June, the highest level on record since 2013 and a marginal increase of 0.25 percentage points compared to the same period of 2021, according to the latest GeoDirectory commercial buildings report.

The study, prepared by EY Ireland, found that commercial vacancy rates increased in 15 out of 26 counties in the 12 months to the end of June, with a total of 29,241 vacant commercial units recorded across Ireland, an increase of 1.4% or 410 properties year-on-year.

"At 13.9%, the national commercial vacancy rate in Q2 2022 was the highest recorded by GeoDirectory since we started compiling these reports in 2013," said Dara Keogh, CEO of GeoDirectory.

"The past two and a half years have proved to be difficult for businesses to navigate, thanks to the impact of Covid-19 restrictions followed by rising inflation and energy costs.”  

The north-west had the highest level of vacancies, with Sligo (19.4%) posting the highest commercial vacancy rate on a county-by-county basis, followed by Galway, Donegal (both 17.2%) and Leitrim and Mayo (both 16.9%).

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The county with the lowest commercial vacancy rate was Meath at 9.9%, followed by Wexford at 10.6% and Kerry at 11.7%, and 10 counties had vacancy rates below the state average

In Dublin, the vacancy rate rose by 0.5 points to 12.6%, and Laois posted the highest increase at 2.2 points as the county's vacancy rate rose to 15.2%, followed by Offaly, Kerry (both +0.7 points)m Galway, Westmeath and Kilkenny (all +0.6 points).

There were reductions in 10 counties, with Longford experiencing a 1.2-point drop in its commercial vacancy rate, the largest recorded drop ahead of Roscommon and Sligo (both -0.6 points).

On a provincial basis, the commercial vacancy rate in Connacht increased 0.1 points to 17.3% in the year to Q2, while the rates in Munster (13.8%) and Ulster (15.4%) both rose 0.3 points, and the vacancy rate in the greater Dublin area rose 0.4 points to 12.6%, slightly below the Leinster commercial vacancy rate of 12.8%.

The report also examined commercial vacancy rates in 80 towns, finding that Ballybofey, Co Donegal remained the town with the highest commercial vacancy rate in Ireland at 30.2%, registering an increase of 0.9 points between Q2 2021 and Q2 2022.  

The Midlands towns of Edgeworthstown, Co. Longford and Edenderry, Co. Offaly, recorded the second and third highest commercial vacancy rates in the country at 26.3% and 25.2% respectively, followed by Kilrush, Co. Clare (25.1%) and Sligo town (24.1%). 

In the twelve months to June 2022, Carrigaline, Co. Cork moved from being the town with the third lowest to the town with the lowest commercial vacancy rate in the country, decreasing from 8.8% Q2 2021 to 6.8% in Q2 2022. Greystones, Co. Wicklow (7.7%) and Gorey, Co. Wexford (8.2%) had the second and third lowest vacancy rates, respectively.

A total of 181,683 commercial address points were occupied at the end of the second quarter, a decline of 1,225 year-on-year, an 86.7% were allocated a NACE code, with the number of NACE-classified commercial units falling 2,520 from a year prior.

The retail and wholesale sector saw the largest decline in NACE classifications with 800 fewer units year, and the broader services sector encompassing a range of economic activities recorded a declined of 952 units.

The analysis also found that the accommodation and food services sector accounted for 22,597 or 14.3% of all commercial address points in Ireland in June 2022, and Kerry was the county with the highest proportion of accommodation and food services units relative to the overall commercial stock in the county.  

(Pic: Getty Images)