Commercial vacancy rate lower than national average

The commercial vacancy rate in Westmeath was 12.7% in June, according to the latest GeoDirectory Commercial Vacancy Rates Report.

This latest figure is unchanged from the same period in 2023. The twice-yearly analysis, prepared by EY, found that the commercial vacancy in Westmeath was lower than the national average of 14.4%.

Of the main towns and urban areas in Westmeath surveyed by GeoDirectory, Athlone had the highest commercial vacancy rate at 20.1%, while Mullingar had the lowest at 13.2%.

Nationally, 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.

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%, 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.

Ballybofey in Donegal was the town the highest commercial vacancy rate in the state at 33.6%, followed by Edgeworthstown in Longford (30.2%) and Shannon in Clare (29.8%). At the other end of the scale, Greystones in Wicklow (5.6%) and Carrigaline in Cork (7.2%) were the towns with the lowest vacancy rates.

Looking specifically at the accommodation and food services sector, a total of 22,211 commercial units in this sector were recorded in June. 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, said, “Commercial vacancy rates increased in 14 out of 26 counties surveyed, which represents an improvement on the same period in June 2023, when vacancy increases were recorded in 20 out of 26 counties. While the national commercial vacancy rate has reached a new high of 14.4% in Q2 2024, the economic outlook remains positive and with inflation falling and a recent cut in ECB interest rates, there is a possibility that commercial vacancy rates will recede from its current peak.”