A small uptick in the national commercial vacancy rate means it reached 13.5% at the end of 2020, an 0.2 percentage point rise on 2019, according to the GeoView commercial property report.

The report warns that the sector hasn’t yet escaped the ravages of Covid-19 and that “the impact of the Covid-19 pandemic on the commercial property landscape has not yet been fully realised”.

Chief executive Dara Keogh (pictured) said: “It has been an extremely turbulent 12 months for commercial sectors in Ireland, with restrictions and lockdowns causing much uncertainty. We have yet to see the full impact of this on the commercial property sector, but some trends are beginning to emerge. 

“The number of retail and wholesale units fell sharply in 2020. This may be as a result of Covid-19 restrictions, but also could point to the changing face of retail with businesses moving towards an online model.”

Last December there were 28,570 vacant commercial properties, and the number of retail and wholesale address points fell by over 2,000 units, a 5.3% decline. Nineteen counties recorded increased vacancy rates, with Meath showing the lowest rate at 10.1% and Sligo the highest at 19.9%.

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The vacancy rates in Connacht and Ulster were above the national average of 13.5%, while Munster was equal to the national average. In comparison, Leinster (12.3%) and Leinster excluding Dublin (12.7%), recorded vacancy rates below the national average.

The seven counties with the highest commercial vacancy rates are all located along the west coast, with almost one in five properties vacant in Sligo. Ballybofey in Donegal recorded the highest vacancy rate at 29.2%, while Greystones in Wicklow continued to show the lowest at  7.2%.

EY-DKM director Annette Hughes added: “Previous GeoView commercial property reports have highlighted an east-west divide in terms of economic activity, and this appears to be increasing. 

“Outside Leinster, no province recorded a commercial vacancy rate below the national average, while stubbornly high rates of commercial vacancy are recorded along the west coast. These are also areas with the highest proportion of tourism and hospitality units, which have been severely impacted by Covid-19 restrictions.”

The full report is available here.