Galway reports rise in number of empty shops
The commercial vacancy rate in Galway rose to 16.6% over the fourth quarter of last year – a minor increase of just 0.3%, but still significantly higher than the national average of 13.5%.
And according to the latest GeoView Commercial Property Report, Galway now accounts for 5.9% of the State’s total commercial stock of 211,677.
Of the urban areas in Galway sampled, Tuam – at 23.4% – had the highest commercial vacancy rate, while Loughrea, with 15.9%, was the lowest.
The findings suggest that the impact of the Covid-19 pandemic on the commercial property landscape in Ireland has not yet been fully realized – but key trends and indicators are beginning to emerge.
And it also suggests a continuing growth in the imbalance between Dublin and Leinster and the rest of the country.
There was an increase in commercial vacancy rates in 19 counties over the final three months of last year, compared to the corresponding period in 2019 – and this included every county in Munster, Ulster and Connacht.
Previous GeoView Commercial Property Reports have highlighted a growing regional disparity in commercial occupancy rates and this trend appears to be accelerating.
The commercial vacancy rates in Connacht and Ulster were above the national average of 13.5%, while Munster was equal to the national average. In comparison, Leinster (12.3%) and Leinster, excluding Dublin, (12.7%) recorded vacancy rates below the national average.
The seven counties with the highest commercial vacancy rates were all located along the west coast of Ireland, with almost one-in-five commercial properties vacant in Sligo (19.9%), the highest in the country.
GeoDirectory CEO Dara Keogh described it as ‘an extremely turbulent twelve months for commercial sectors in Ireland with restrictions and lockdowns causing much uncertainty for businesses’.
“We have yet to see the full impact of this on the commercial property sector, but some trends are beginning to emerge. The number of retail and wholesale units fell sharply in 2020. This may be as a result of Covid-19 restrictions, but also could point to the changing face of retail with businesses moving towards an online model,” he said.
“Previous GeoView Commercial Property reports have highlighted an east-west divide in terms of economic activity and this appears to be increasing,” admitted Annette Hughes, Director, EY-DKM Economic Advisory.
“Outside of Leinster, no province recorded a commercial vacancy rate below the national average, while stubbornly high rates of commercial vacancy are recorded along the west coast. These are also areas with the highest proportion of tourism and hospitality units, which have been severely impacted by Covid-19 restrictions,” she said.
The GeoDirectory database is the most comprehensive address database of dwellings in the Republic of Ireland.
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.