Commercial vacancy rate hits new high of 14.4%
The national commercial vacancy rate hit a new high of 14.4% in June, new data shows.
30,246 commercial units were classified as vacant across the country, according to the latest GeoDirectory report.
The analysis, prepared by EY, found that the commercial vacancy rate increased in 14 out of 26 counties surveyed.
“While the national commercial vacancy rate has reached a new high of 14.4% in the second quarter of 2024, the economic outlook remains positive and with inflation falling and a recent cut in ECB interest rates, there is a possibility that commercial vacancy rates will recede from its current peak,” said Annette Hughes, Director at EY Economic Advisory.
The data shows that the highest commercial vacancy rates continue to be found in the west of the country with Sligo, at 20.5%, recording the highest proportion of vacant commercial units between April and June.
Donegal at 19.4%, Galway at 18.5%, Limerick at 17.5% and Leitrim at 17.% completed the top five counties with the highest commercial vacancy rates.
Meath, at 9.8%, was the county with the lowest commercial vacancy rate in the country and the only county in the State with a vacancy rate below 10%.
Wexford at 10.6%, Cork at 12.4%, Kerry at 12.5% and Cavan at 12.5% were the counties to record the next lowest commercial vacancy rates.
In Dublin, the commercial vacancy rate was 13.3% in the second quarter of the year, an increase of 0.2% on the previous year.
Of the 80 main towns and urban areas surveyed by GeoDirectory nationally, Ballybofey, Co Donegal registered the highest commercial vacancy rate at 33.6%, followed by Edgeworthstown, Co Longford at 30.2% and Shannon, Co Clare at 29.8%.
At the other end of the scale, Greystones, Co Wicklow at 5.6%, and Carrigaline, Co Cork at 7.2% were the towns with the lowest vacancy rates.
The Accommodation and Food Services sector accounts for 14.4% of all commercial units in the state, with the highest proportion located in Kerry at 24% and Clare at 20.5%.
“The national commercial vacancy rate has increased steadily in recent years, and at 14.4%, is now at the highest level since GeoDirectory began tracking commercial vacancy data in 2013,” said Dara Keogh, CEO of GeoDirectory.
“Changing consumer habits, the growth of online commerce, remote working and rising business costs have all contributed to a realignment of the commercial property market.
“The reality is that some of these commercial units may never now return to the commercial stock, requiring action to provide opportunities for targeted regeneration projects and the repurposing of long-term vacant buildings,” he added.
Article Source – Commercial vacancy rate hits new high of 14.4% – RTE
