Commercial vacancy rate in Offaly rises to staggering figure

THE commercial vacancy rate in Offaly increased by 0.6 percentage points (pp) to 16.1% in the twelve months to Q4 2022 according to the latest GeoDirectory Commercial Vacancy Rates Report, published today.

The commercial vacancy rate in Offaly was higher than the national average of 14.0%

According to the report the commercial vacancy rate in Ireland hit a ten year high of 14.0%, the highest level recorded by GeoDirectory since the report began in 2013. The report, prepared by EY, found that commercial vacancies increased in 18 out of 26 counties.

County Commercial Vacancy Rates

Sligo, at 19.6%, was the county with the highest commercial vacancy rate, followed by Galway (17.6%) and Donegal (17.5%). The west of the country continued to record high commercial vacancy rates in Q4 2022, with the commercial vacancy rate in Connacht reaching 17.6%, an increase of 0.3% compared to the same period in 2021.

Meath (10.2%) remained as the county with the lowest commercial vacancy rate in the state, closely followed by Wexford (10.4%) and Kerry (12.2%).

In Dublin, the commercial vacancy rate was unchanged from Q4 2021 at a rate of 12.9%, which remains the highest level recorded in Dublin since Q4 2016.

Ten-Year Trends

GeoDirectory released its first Commercial Vacancy Rates Report in January 2013. The Commercial Vacancy Rate at the time was 11.4%, 3.9 percentage points lower than the 14.0% rate recorded in Q4 2022. With the exception of Dublin, every county has experienced an increase in commercial vacancy rates over the past decade. Donegal, at 5.5 percentage points, registered highest increase in commercial vacancy rates as a percentage of stock between January 2013 and December 2022 (12.0% to 17.5%).

Analysis of Towns

Of the towns in Offaly surveyed, Edenderry had the highest commercial rate at 25.1%, while Birr had the lowest rate at 17.2%.

The report found that Shannon, Co. Clare was the town with the highest commercial vacancy rate in the state, at 29.8%. Ballybofey, Co. Donegal (29.2%), Edgeworthstown, Co. Longford (28.4%), Boyle, Co. Roscommon (27.7%), and Sligo Town (25.4%) completed the top five towns by highest commercial vacancy rate.

Gorey, Co. Wexford and Greystones, Co. Wicklow were the towns with the lowest commercial vacancy rate in the country, at 7.1% each.

Within the Dublin area, Dublin 17 recorded the largest year-on-year increase in vacancy, growing by 1.5% to 14.6%.  Dublin 9 had the highest vacancy rate of 17.2%, increasing by 0.4% from Q4 2021.  The Dublin postcode with the lowest vacancy rate was Dublin 15, at 7.1%. Nine out of the 22 Dublin areas recorded a decrease in vacancy rates, with 16 recording vacancy rates below the national average of 14%.

Commenting on the findings of the latest Commercial Vacancy Rates Report,  Dara Keogh, Chief Executive of GeoDirectory  said, “The rate of commercial vacancies is the highest level recorded by GeoDirectory since the Commercial Vacancy Rates Report began in 2013, continuing the trend of increasing rates in recent years. It is likely that this will continue in the short to medium term, as working-from-home becomes more formalised, combined with the growth of online retail and services, resulting in businesses requiring less physical space than previously.”

Annette Hughes, Director of EY Economic Advisory Services  said, “Only five counties in the country recorded a decrease in commercial vacancy rates, while counties along the west coast continue to exceed the national average. Looking at specific economic sectors, there was a notable drop in the number of Service and Retail & Wholesale units, which points to the ongoing challenges these sectors face due to evolving economic trends and geopolitical uncertainties.”