The number of vacant commercial properties in Ireland has seen an increase in 20 counties within the period of 12 months till June 2023, as stated by the Geodirectory survey. According to the report, there were 29,798 vacant commercial units in the 26 counties during the second quarter of this year, marking a rise of 557 units compared to the previous year.
The vacancy rate has increased by 0.2 percentage points to reach 14.1% in the past 12 months, which marks the highest level since 2013.
Dara Keogh, the chief executive of GeoDirectory, has suggested that this increase may be a result of the ongoing struggles faced by businesses with rising energy costs, food inflation, and interest rate hikes affecting commercial owner occupiers and tenants alike.
The survey reveals that Dublin experienced a rise of 0.5 percentage points in vacancy rates over the year, with the commercial vacancy rate in the capital reaching 13.1%. This trend was also observed in the Greater Dublin Area, where vacancy rates increased from 12.6% to 13% in the same time period.
Galway recorded the largest increase in vacancy rates, with a rise of 0.8 percentage points from 17.2% in Q2 2022 to 18% in Q2 2023.
According to Annette Hughes of EY, who compiled the report, trends like remote work, sustainability, and energy efficiency may have contributed to the increase in vacancy rates.
In Q2 2023, a total of 180,809 occupied commercial address points were recorded, indicating a net decline of 874 units compared to Q2 2022 figures. The services sector experienced the highest decline of 876 units, followed by the retail and wholesale sector, which saw a decline of 603 units. Despite this, the services sector still holds the highest share, accounting for 49.3% of all commercial sites in Ireland.
Within the services sector, the accommodation and food services sector makes up 14.4%, or 22,481 units, of all commercial address points in Ireland as of June. Among the counties, Kerry has the highest share of accommodation and food services units at 24.5%, followed by Clare at 20.6%, Donegal at 19.2%, and Leitrim at 18.8%.
Ballybofey, Co Donegal, has the highest commercial vacancy rate in the country at 29.9% in June. Shannon, Co Clare, and Edgeworthstown, Co Longford, have the second and third-highest vacancy rates at 29.4% and 29.2%, respectively.
On the other hand, Greystones, Co Wicklow, has achieved the lowest vacancy rate in the country at 6.8%, followed by Carrigaline, Co. Cork, at 7.5%, and Gorey, Co Wexford, at 9.3%.
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