National Commercial Vacancy Rate Increases Slightly to 13.9% in Q2 2022
GeoDirectory Report finds that commercial vacancy rates increased in 15 counties across Ireland in the twelve months to June 2022
GeoDirectory Commercial Buildings Report Q2 2022
- The national commercial vacancy rate increased by 0.25 percentage points (pp) to 13.9% in the twelve months to Q2 2022
- In total, there were 29,241 vacant commercial units recorded across Ireland in Q2 2022, a rise of 410 when compared with the previous year
- At 19.4%, Sligo was the county with the highest commercial vacancy rate, followed by Galway and Donegal both at 17.2%
- The lowest commercial vacancy rates were recorded in Meath (9.9%), Wexford (10.6%) and Kerry (11.7%).
- Ballybofey, Co. Donegal, remained the town with the highest commercial vacancy rate in the state at 30.2%.
25th August 2022
The State’s commercial vacancy rate stood at 13.9% in June 2022, a marginal increase of 0.25 percentage points (pp) when compared to the same period in 2021, according to the latest GeoDirectory Commercial Buildings Report published today. The commercial vacancy rate is the highest level recorded by GeoDirectory since it began reporting on the rates in 2013.
The report, prepared by EY, found that commercial vacancy rates increased in 15 out of 26 counties in the twelve months to June 2022, with a total of 29,241 vacant commercial units recorded across Ireland.
County Commercial Vacancy Rates
The highest commercial vacancy rates in June 2022 were found in the west and north-west of Ireland, continuing a trend observed in previous GeoDirectory Commercial Buildings Reports. At 19.4%, Sligo was the county with the highest commercial vacancy rate, followed by Galway and Donegal (both at 17.2%), and Leitrim and Mayo (both 16.9%).
The county with the lowest commercial vacancy rate was Meath at 9.9%, followed by Wexford at 10.6% and Kerry at 11.7%.
Notably, Dublin recorded an increase of 0.5 pp in the year to Q2 2022, with the commercial vacancy rate in the capital rising to 12.6%. For the second year in succession, Laois recorded the highest increase at 2.2pp, increasing the commercial vacancy rate in the county to 15.2%.
Province-wide, the commercial vacancy rate in Connacht increased by 0.1pp to 17.3% in the year to Q2 2022, while the commercial vacancy rate in Ulster increased by 0.3pp to 15.4%.
Analysis of Commercial Vacancy Rates in Towns
The GeoDirectory Commercial Buildings Report examined the commercial vacancy rates among a sample of 80 towns across the country in June 2022. The report found that Ballybofey, Co. Donegal, remained the town with the highest commercial vacancy rate in Ireland at 30.2%, registering an increase of 0.9pp between Q2 2021 and Q2 2022.
The Midlands’ towns of Edgeworthstown, Co. Longford and Edenderry, Co. Offaly, recorded the second and third highest commercial vacancy rates in the country at 26.3% and 25.2% respectively, followed by Kilrush, Co. Clare (25.1%) and Sligo Town (24.1%).
In the twelve months to June 2022, Carrigaline, Co. Cork moved from the third lowest to the lowest commercial vacancy rate in the country, decreasing from 8.8% Q2 2021 to 6.8% in Q2 2022. Greystones, Co. Wicklow (7.7%) and Gorey, Co. Wexford (8.2%) had the second and third lowest vacancy rates respectively.
Commercial Address Points by Sector
There were 181,683 occupied commercial address points in Q2 2022, representing a decline of 1,225 on the corresponding figure in Q2 2021. Of these, 86.7% were allocated a NACE* code. The number of NACE code-classified commercial units declined by 2,520 between Q2 2021 and Q2 2022 with most of this decline found in the Retail and Wholesale sector, with 800 fewer units. The broader sector of Services, which encompasses a range of economic activities, recorded a decline of 952 units.
The analysis also found that the Accommodation and Food Services sector accounted for 14.3% of all commercial address points in Ireland in June 2022. In total, 22,597 commercial units were classified as operating in this sector. Kerry, at 24.3%, was the county with the highest proportion of Accommodation and Food Services units relative to the overall commercial stock in the county.
Commenting on the findings of the report, Dara Keogh, Chief Executive of GeoDirectory said
“The latest GeoDirectory Commercial Buildings Report highlights a marginal but continued rise in commercial vacancy rates across Ireland. At 13.9%, the national commercial vacancy rate in Q2 2022 was the highest recorded by GeoDirectory since we started compiling these reports in 2013. The past two and a half years have proved to be difficult for businesses to navigate, thanks to the impact of Covid-19 restrictions followed by rising inflation and energy costs.”
Annette Hughes, Director, EY Economic Advisory said
“We have seen a continuation of a trend we have seen in previous reports which shows a clear divide between the east and west of the country in terms of commercial activity. The highest vacancy rates were found in Connacht and the north-west, which were significantly higher than the national average. In the twelve months to June 2022, commercial vacancies increased in 15 out of 26 counties.”
ENDS
To read the full report, click here.
For Further Information:
Killian Keys, Wilson Hartnell Public Relations, 086-1024302, killian.keys@ogilvy.com
Notes to Editor:
Dara Keogh and Annette Hughes are available for interview
*NACE Rev. 2 is the statistical classification of economic activities, an acronym for General Industrial Classification of Economic Activities within the European Communities.
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 GeoDirectory Commercial Vacancy Rates Report is attached in PDF format and is available 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.
EY Economic Advisory Services is a leading economic consultancy with a strong record of research across many areas and sectors, including building and construction. EY staff have accumulated considerable experience in working with a range of private and public sector clients, including Government departments, local authorities and other public sector agencies.
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/strategy-transactions/ey-dkm-economic-advisory-services