From Retail Decline to Service Growth: Insights from Commercial Buildings Report Q2 2025

Ireland’s commercial property landscape continues to shift, with the latest GeoDirectory Commercial Buildings Report (Q2 2025) findings reveal rising vacancy rates and changing sectoral dynamics. For businesses, investors, and policymakers, these figures provide important insights into regional trends and the broader economic climate. 

National Vacancy Rate Reaches New Peak 

The national commercial vacancy rate rose to 14.6% in Q2 2025, marking the highest it has been since the report’s introduction in 2013. That translates to 30,800 vacant commercial units out of a total stock of 211,149. The report notes this represents an increase of 0.2 percentage points compared with Q2 2024. 

Commenting on the findings, Dara Keogh, CEO of GeoDirectory, said: 

The national commercial vacancy rate has reached a new high of 14.6% in Q2 2025, the highest level recorded by GeoDirectory, continuing the trend of increasing commercial vacancy experienced in recent years. There are now 30,800 commercial units across the country currently vacant, a reminder that our commercial landscape as well as consumer behaviour is shifting.

Regional Disparities Across Ireland 

Vacancy rates vary significantly across the country: 

• Connacht reported the highest rate at 18.6%, with all five counties exceeding the national average. Boyle, Co. Roscommon, topped the list with nearly 30% of commercial premises vacant. 
• Ulster followed at 17.1%, with Donegal recording a notable rise of 0.9 percentage points to reach 20.3%. 
• Munster remained below the national rate at 14.1%, although Co. Limerick stood out at 17.9%. 
• Leinster (excluding Dublin) had the lowest vacancy at 12.9%, unchanged year-on-year. 
• Dublin rose to 13.9%, still below the national rate, but with sharp contrasts between districts: “Dublin 2 and Dublin 8 held the highest vacancy rates of 18.4% and 17.4% respectively, whilst Dublin 15 and Dublin 16 held the lowest at 6.8% and 7.7%” (GeoDirectory, 2025). 

Annette Hughes, Director at EY Economic Advisory, added: 

“In Q2 2025, the commercial property vacancy rate rose in 17 out of the 26 counties, continuing a trend of more than half of the counties experiencing an increase in vacancy rates. Overall, the commercial vacancy rate is continuing its upward trajectory at the same time as residential vacancy rates have reached historic lows. This trend highlights the significant challenges and market dynamics commercial businesses have faced in recent years, in spite of the strong overall economic performance of the Irish economy. Evolving shopping preferences and ongoing cost pressures on businesses and households continue to impact the sector, although the extent of their influence will vary depending on factors such as location and sector.” 

Dublin: A Tale of Two Cities 

Dublin remains below the national average, but with wide variation: 

• Highest: Dublin 2 (18.4%), Dublin 8 (17.4%) 
• Lowest: Dublin 15 (6.8%), Dublin 16 (7.7%) 

The Services sector dominates with 52.2% of occupied units. Interestingly, Dublin also hosts double the national average of financial services units (5.0% vs 2.5%), underscoring its position as Ireland’s financial hub. 

Sectoral Shifts: Retail & Wholesale in Decline 

The Services sector still holds the majority share at 49.5%, but contractions are clear: 

• Retail & Wholesale: 21.8% share, largest fall (-520 units) 
• Services: -325 units year-on-year, but still dominant 
• Health: 9.6%, down 58 units 
• Industry: the only sector with growth (+40 units) 

Accommodation & Food Services Under Pressure 

The sector saw a decline of 150 units year-on-year, representing 14.4% of commercial stock. The west coast remains most reliant: 

• Kerry: 23.8% 
• Clare: 20.4% 
• Donegal: 19.0% 

The report breaks this down into: 

• Restaurants & catering: 45.4% 
• Beverage serving: 30.4% 
• Hotels & short-term accommodation: 24.3% 

Town-Level Contrasts 

Vacancy rates by town highlight local disparities: 

• Highest: Ballybofey, Donegal (33.7%), Shannon, Clare (30.8%), Boyle, Roscommon (29.8%) 
• Lowest: Carrigaline, Cork (5.1%) and Greystones, Wicklow (5.5%) 

These extremes highlight stark differences between regional towns and commuter belts near Dublin. 

What This Means for Business 

For businesses considering expansion, the report highlights opportunities and risks. Lower vacancy rates in parts of Leinster and Dublin suggest tighter competition for space, whereas higher vacancies in Connacht and Ulster may signal available property but also weaker local demand. 

The retail sector’s contraction is particularly noteworthy for consumer-focused businesses, while the resilience of the Services sector—especially in Dublin—reflects Ireland’s ongoing shift towards service-driven economic activity.

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