GeoDirectory Commercial Vacancy Rates Report Q2 2024

National Commercial Vacancy Rate Reaches New High Of 14.4%

30,246 commercial units recorded as vacant by GeoDirectory in June 2024

• The national commercial vacancy rate stood at 14.4% in Q2 2024, an increase of 0.3 percentage points (ppts) compared to the same period in 2023
• 30,246 commercial properties were classified as vacant in June 2024, with vacancy rates increasing in 14 out of 26 counties surveyed
• The highest commercial vacancy rates were located in the west of the country, with Sligo (20.5%), Donegal (19.4%) and Galway (18.5%) recording the highest proportion of vacant properties
• Meath, at 9.8%, was the county with the lowest commercial vacancy rate, followed by Wexford (10.6%) and Cork (12.4%)
• Ballybofey, Co. Donegal was the town with the highest commercial vacancy rate in the State at 33.6%, while Greystones, Co. Wicklow recorded the lowest rate (5.6%)
• The Accommodation and Food Services sector accounts for 14.4% of all commercial units in the state, with the highest proportion located in Kerry (24.0%) and Clare (20.5%)
   

The national commercial vacancy rate reached a new high of 14.4% in June 2024, with a total of 30,246 commercial units classified as vacant across the State according to the latest GeoDirectory Commercial Vacancy Rates Report published today. The analysis, prepared by EY, found that the commercial vacancy rate increased in 14 out of 26 counties surveyed.

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 in Q2 2024. Donegal (19.4%), Galway (18.5%), Limerick (17.5%) and Leitrim (17.5%) rounded off the top five counties with the highest commercial vacancy rates.

The commercial vacancy rate in Donegal rose by 1.5 ppts in the twelve months to June 2024, the highest increase recorded, and over twice the rate of the next highest county, Leitrim (+0.7 ppts).

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 (10.6%), Cork (12.4%), Kerry (12.5%) and Cavan (12.5%) were the counties to record the next lowest commercial vacancy rates.

In Dublin, the commercial vacancy rate was 13.3% in Q2 2024, an increase of 0.2 ppts compared to the previous year. Dublin 2 was the area with highest commercial vacancy rate in the capital, at 17.8%. Dublin 9 (17.5%), Dublin 8 (17.3%) and Dublin 3 (14.7%) were the other postal districts in the city which recorded higher vacancy rate than the state average. At 6.7%, Dublin 15 and Dublin 16 had the lowest vacancy rates in the capital.

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 (30.2%) and Shannon, Co. Clare (29.8%). At the other end of the scale, Greystones, Co. Wicklow (5.6%) and Carrigaline, Co. Cork (7.2%) were the towns with the lowest vacancy rates.

Using NACE* codes to classify commercial units by economic sector, the latest GeoDirectory Commercial Vacancy Rates Report has identified broad trends in the use of commercial units nationally. Of the 180,515 occupied units nationally, 154,217 have an assigned NACE code.

The analysis found that the number of commercial units classified by NACE codes has decreased by 1,370 units between Q2 2023 and Q2 2024. The majority of this decrease can be attributed to the services sector and the retail and wholesale sector, which declined by 625 and 514 units respectively.

Looking specifically at the accommodation and food services sector, a total of 22,211 commercial units in this sector were recorded in June 2024. This represents a decline of 270 commercial units compared to the same period in 2023.

The highest proportion of accommodation and food service units were found in counties in the west of the country, accounting for 24.0% of all commercial units in Kerry, 20.5% of all commercial units in Clare and 19.2% of all commercial units in Donegal.

Commenting on the findings of the latest GeoDirectory Commercial Buildings Report, Dara Keogh, CEO of GeoDirectory, said, “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. 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.”

Annette Hughes, Director at EY Economic Advisory, commented, "Over the last year, commercial vacancy rates have risen in 14 out of 26 counties, while eight counties experienced a decline, and four remained unchanged. Despite the national commercial vacancy rate hitting a new peak of 14.4% in the second quarter of 2024, the economic forecast for Ireland continues to be optimistic. The country has seen record employment levels, a moderation in inflation, and recent cuts in interest rates by the European Central Bank. These factors suggest that the commercial vacancy rates may begin to decrease from their current high."

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*NACE Rev. 2 is the statistical classification of economic activities, an acronym for General Industrial Classification of Economic Activities within the European Communities.

For Further Information:
Killian Keys, killian.keys@ogilvy.com, 086-1024302
Niamh O’Connor, niamh.oconnor@ogilvy.com, 085-8542540

Notes to editors

About GeoDirectory - Data Intelligence for Targeted Growth
The GeoDirectory database is the most comprehensive address database of dwellings in the Republic of Ireland. A copy of the Residential Buildings Report is attached in PDF format and is available at www.geodirectory.ie

GeoDirectory was jointly established by An Post and Tailte Éireann (formerly Ordnance Survey Ireland) to create and manage Ireland’s only complete database of commercial and residential buildings. The figures are recorded through a combination of the An Post network of 5,600 delivery staff working with Tailte Éireann.

The GeoDirectory database is used by many different companies and organisations across a diverse range of applications. Its database and services are used by the Central Statistics Office to achieve more accurate census results.

In the property sector, GeoDirectory is used by the Property Registration Authority. In addition, utility companies, banking and insurance providers, and all local authorities use the database.

For further information or to view relevant case studies please visit: www.geodirectory.ie and @GeoDirectory_ie on Twitter.

Past GeoDirectory Commercial Vacancy Reports are available to view at: https://www.geodirectory.ie/knowledge-centre/reports-blogs. and https://www.ey.com/en_ie/services/strategy-transactions/ey-economic-advisory-services