Commercial Vacancy Rate Rises Slightly to 13.6%
GeoView Commercial Vacancy Rates Report finds noticeable drop in the number of Retail and Wholesale units in the twelve months to June 2021.
- The national commercial vacancy rate increased by 0.1 percentage point (ppt) to 13.6% between June 2020 and June 2021
- Meath and Wexford were the counties with the lowest commercial vacancy rates (10.3%), while Sligo had the highest rate (20.0%)
- The report found that there were 1,931 fewer premises operating in Retail and Wholesale representing a drop of 5.4% compared to Q2 2020
- There was also a notable drop in the number of units in the Services sector, which fell by 1,467 (-1.8%).
- 14.2% of all commercial stock in June 2021 was classified as ‘Accommodation and Food Services’, with the highest proportion of these properties found in Kerry (24.3%), Clare (20.7%) and Donegal (19.3%)
The national commercial vacancy rate stood at 13.6% in Q2 2021, representing a marginal increase of 0.1ppt on the corresponding rate in June 2020, according to the latest GeoView Commercial Vacancy Rates Report commissioned by GeoDirectory and prepared by EY.
Out of a total commercial property stock of 211,739 units in Ireland, 28,831 were classified as vacant in June 2021.
Commercial Vacancies: National Trends
18 counties recorded an increase in commercial vacancy rates between June 2020 and June 2021, with Kildare, at +1.0ppt, registering the sharpest rise in vacancy rates. Vacancy rates declined in six counties with Laois recording the largest decrease at 0.9ppt over the same period.
The report found that the lowest provincial commercial vacancy rate in the country was in Leinster with an average vacancy rate of 12.7%. At 10.3% each, Meath and Wexford were the counties with the lowest commercial vacancy rates in the province and country.
In Dublin, the commercial vacancy rate remained unchanged at 12.2% from June 2020, albeit with varying vacancy rates across the Dublin postcodes. At 6.5%, Dublin 15 recorded the lowest commercial vacancy rate in the capital, while Dublin 9 had the highest rate at 16.4%.
The commercial vacancy rate in Munster (13.5%) was just below the national average, with a vacancy rate of 12.2% recorded in Cork.
The highest commercial vacancy rates were found in the Connacht region, where the provincial vacancy rate stood at 17.2%. The four counties with the highest commercial vacancy rates in the country were all located in Connacht, namely Sligo (20.0%), Roscommon (17.3%), Leitrim (17.2%) and Mayo (17.0%).
Analysis of Town Vacancy Rates
The GeoView Commercial Vacancy Rates Report has analysed the commercial vacancy rates in selected towns across the country in June 2021. It found that Ballybofey, Co. Donegal, remained the town with the highest vacancy rate (29.3%) in Ireland. Edenderry, Co. Offaly (27.7%), Edgeworthstown, Co. Longford (26.6%), Kilrush, Co. Clare (25.9%) and Ballina, Co. Mayo (25.1%) all recorded a vacancy rate over 25.0%.
The analysis also found that Greystones, Co. Wicklow, was the town with the lowest commercial vacancy rate (7.0%) in the country, followed by Gorey, Co. Wexford (7.8%) and Carrigaline, Co. Cork (8.8%).
Analysis of Commercial Sectors
Using NACE* codes to classify economic sectors, the GeoView Commercial Vacancy Rates Report identifies the use of the commercial units. Of the total 182,908 occupied address points, 87.5% or 160,016 are allocated to a business sector.
The data found that in Q2 2021, there were 1,931 fewer premises operating in Retail and Wholesale representing a drop of 5.4% compared to Q2 2020. There was also a notable drop in the number of units in the Services sector, which fell by 1,467 (-1.8%).
Looking specifically at Accommodation and Food services, these units accounted for 14.2% of all occupied commercial properties in the country in June 2021. This sector has been particularly impacted by Covid-19 restrictions over the past 18 months. The highest proportions of Accommodation and Food premises are located in some of the most popular tourist locations, such a Kerry (24.3%), Clare (20.7%) and Donegal (19.3%).
Commenting on the GeoView Commercial Vacancy Rates Report, Dara Keogh, Chief Executive of GeoDirectory said, “We have seen a slight, but consistent increase in commercial vacancy rates across the country over the past twelve months. There still appears to be a very prominent gap in economic activity on the east coast compared to the west coast and this is something which will need to be addressed on a policy level. The report also found a noticeable decline in the number of Retail and Wholesale units in the country, with 1,931 fewer premises recorded than this time last year.”
Annette Hughes, Director at EY Economic Advisory, said, “The data provided is up to mid-June 2021 and hence just captures the beginning of the easing of restrictions for outdoor dining for the hospitality sector. The further reopening of indoor hospitality at the end of July and the more general relaxation of COVID-19 restrictions is giving rise to an early rebound in economic activity. While the sustainability of some businesses in the hospitality sector may be tested after the summer staycation season, the hope is that progress on the vaccination programme reduces any risk of a resumption of further restrictions and the domestic economic recovery gathers momentum over the coming 12 months. “
For Further Information:
Killian Keys, Wilson Hartnell Public Relations, 086-1024302, firstname.lastname@example.org
Dara Keogh and Annette Hughes are available for interview, please email email@example.com for more information.
About GeoDirectory - Data Intelligence for Targeted Growth
The GeoDirectory database is the most comprehensive address database of residential and commercial properties in the Republic of Ireland. A copy of the GeoView Commercial Vacancy Rates Report is attached in PDF format and is available under Knowledge Centre at www.geodirectory.ie
GeoDirectory was jointly established by An Post and Ordnance Survey Ireland (OSi) 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 OSi.
For further information or to view relevant case studies please visit: www.geodirectory.ie and @GeoDirectory_ie on Twitter.
Past GeoView Commercial Property Reports are available to view here.