Despite renewed buoyancy in Ireland’s real estate market the commercial property vacancy rate continued to rise throughout last year. By December there were nearly 30,000 empty shops, factories and offices across the country.
In the first survey of its kind, GeoDirectory claims that by the end of December the vacancy rate for Ireland’s commercial properties stood at 12.4 per cent — up almost one-and-a-half points from the start of 2013. Of the country’s 223,308 recorded commercial addresses, 27,585 were unoccupied with the number of empty premises rising by 2,153 over the 12 months.
GeoDirectory was set up by An Post and Ordnance Survey Ireland to create and manage Ireland’s only complete database of commercial and residential buildings. Its report showed that all four provinces recorded an increase in their overall vacancy rate. In Leinster the level rose from 11.4 per cent a year ago to 12.4 per cent, while in Connacht it climbed one point to 13.9 per cent. Munster saw a similar increase to 11.7 per cent while in Ulster, vacancies rose from 11.3 per cent to 12 per cent.
GeoDirectory’s chief executive is Dara Keogh. “The vacancy rate increased steadily over the course of the year and was matched by a steady decrease in occupied commercial premises in Ireland, which indicates that businesses may still be feeling the effects of the economic downturn,” he said.
Dublin has by far the highest proportion of commercial properties in the country. The 48,966 addresses in the capital make up more than a fifth of the national total. Yet while prime office vacancy levels are as low as six per cent, the report shows Dublin has the fourth highest rate of unoccupied buildings in Ireland, with 13.5pc of buildings not in use.
“The retail sector is still in a desperate position with vacancy rates outside Dublin still incredibly high, highlighting the ‘two-tier’ market between Dublin and the rest of the country, says Jonathan Hillyer, of property managers HWBC.
“Certain parts of Dublin are flying, and certain sectors of the market — offices in particular — are roaring ahead, but that is still a long way away from proclaiming the market is back.”
In addition to looking at vacancy rates, the report also examines trends within the commercial property sector. Not surprisingly, the services sector dominates the market, accounting for 46 per cent of all businesses. Industry and distribution is the second biggest sector with a 29 per cent share, while the health and social sector is third, accounting for 8.7 per cent of all Ireland’s commercial properties.
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