Almost one-quarter of commercial units in Limerick town are shuttered
Survey reveals decline of bricks-and-mortar retail in favour of online
The latest GeoDirectory Commercial Vacancy report has revealed that some 17.5% of commercial buildings across the city and county were closed and out of use during June.
It represents a year-on-year increase, and highlights the continued struggle of bricks and mortar retail against internet shopping.
The twice-yearly analysis, carried out by financial firm EY found the vacancy rate in Limerick was higher than the national average of 14.4%.
Almost a quarter of the commercial units in Newcastle West were shuttered, according to the survey.
In the city centre, the vacancy rate stood at 19.4%.
Limerick is still behind the counties with the highest vacancy rates.
At the other end of the scale, Meath, on Dublin’s commuter belt was the county with the lowest commercial vacancy rate.
Indeed, the Royal County is the only one in Ireland with a vacancy rate in single figures, at 9.8%.
In Dublin, the commercial vacancy rate was 13.3%, up marginally year-on-year.
Ballybofey in Donegal was the town the highest commercial vacancy rate in the state at 33.6%.
Dara Keogh, the chief executive 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.”
He said many units designed for commercial use may never return to this purpose.
Annette Hughes, director at EY Economic Advisory, added: “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.”