The share of business premises standing empty has reached a record high as the pandemic, inflation and changing shopping habits hit services firms and retailers hardest.
he national commercial vacancy rate reached 14pc last year, according to location data specialists GeoDirectory, up 0.1 points in the year to December.
It means that 29,581 places of business remained vacant and available for use out of a total stock of 210,710 commercial properties.
It is the highest rate since GeoDirectory’s first commercial buildings report in 2013.
The services sector – including hospitality – and retailers made up the bulk of the decrease in occupied premises last year.
“There have always been business closures,” said Dara Keogh, GeoDirectory’s chief executive.
“What is not happening is more businesses opening to replace them. What we are seeing is a slow tick-up of commercial vacancies. This is the real economy: when you walk down your street and see vacant shops, that’s when you feel it.”
According to GeoDirectory, eight counties saw decreases in or flat vacancy rates, while 18 saw increases in vacancies.
Laois and Kerry saw the largest increases
Commercial vacancy rates reached a high of 19.6pc in Sligo and a low of 10.2pc in Meath.
Laois and Kerry saw the largest increases. Rates decreased in Kildare, Leitrim, Sligo, Carlow and Cavan.
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Out of 80 towns sampled, Shannon in Co Clare reported the highest commercial vacancy rate at 29.8pc, an increase of 5.9pc year on year.
Gorey in Co Wexford and Greystones in Co Wicklow had the lowest rates, at 7.1pc each.
Mr Keogh said the upward trend is likely to “continue in the short to medium term” as the shift to working from home, more online shopping and the end of government business supports sees firms either going bust or requiring less space to operate.
Commercial vacancy rates tend to react with a few years’ lag to an economic shock.
Rural pubs are closing because their market is not viable
The data comes as the government launches a new campaign to promote vacant property supports such as planning exemptions and ‘repair and lease’ loans.
Since pubs were exempted from planning rules last year, applications from 53 former pub owners have come in, seeking to convert their vacant premises into 169 new homes. Pubs made up a fifth of all applications under the planning exemption last year.
A spokesperson for the Licensed Vintners Association, which represents Dublin pubs, said rural pubs face a “challenging business environment”.
“Rural pubs are closing because their market is not viable and so they are seeking alternative uses for these properties. The fact remains that Ireland is over-pubbed. We have one pub for every 738 people in this country.”
GeoDirector’s Mr Keogh said the planning exemption was a “good progressive step that will have an impact over time”.
Meanwhile, figures from real estate firm Sherry FitzGerald show the stock of houses available for sale remains at a historically low level.
The number of second-hand properties for sale has dropped by 26pc since January 2020.