Offaly commercial vacancy rate highest in Leinster

Offaly has the highest rate of commercial vacancies in Leinster, with Edenderry registering the second-highest level of empty units among towns in the province.

The commercial vacancy rate in Offaly was 16% in June 2024, according to the latest GeoDirectory Commercial Vacancy Rates Report.

This figure remains unchanged from the same period in both 2023 and 2022.

The twice-yearly analysis, prepared by EY, found that the commercial vacancy in Offaly was the highest among Leinster counties, including Dublin, and higher than the national average of 14.4%.

Of the main towns and urban areas in Offaly surveyed by GeoDirectory, Edenderry had the highest commercial vacancy rate at 26.6%, Tullamore had 19.9% and Birr was at 15.9%.

Those rates saw Edenderry rank sixth among the 80 towns and 22 Dublin districts surveyed for the report.

When those figures are broken down into towns in Leinster, Edenderry ranks second, with only Longford's Edgesworthtown ranking higher at 30.2%. Tullamore comes in at sixth place in the province.

The vacancy rate in Edenderry rose from 24.6% for the same period in 2023, while Tullamore's rate remained unchanged and Birr's fell from 17.2%

Ballybofey in Donegal once again retained its position as the town with the highest commercial vacancy rate in the state at 33.6%, followed by Edgeworthstown. At the other end of the scale, Greystones in Wicklow (5.6%) and Carrigaline, Cork (7.2%), were the towns with the lowest vacancy rates.

The report identified broad trends in the use of commercial units nationally. The number of commercial units has decreased by 1,370 units between Q2 2023 and Q2 2024.

The majority of this decrease can be attributed to the services sector and the retail and wholesale sector, which declined by 625 and 514 units respectively.

Looking specifically at the accommodation and food services sector, a total of 22,211 commercial units in this sector were recorded in June 2024, down 270 compared to the same period in 2023.

Commenting on the findings of the report, GeoDirectory CEO Dara Keogh 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.”

EY Economic Advisory Director Annette Hughes 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.”