Athlone commercial vacancy rate far exceeds national, county averages

The rate of vacant commercial units in Athlone is 20.1%, which is significantly higher than both the national average and county levels.

The Athlone rate remains unchanged since the same period last year, according to the latest GeoDirectory Commercial Vacancy Rates Report.

The twice-yearly analysis, prepared by EY, found that the commercial vacancy in Westmeath overall was also unchanged at 12.7%. While this is lower than the national average of 14.4%, the rate of 20.1% for Athlone means it ranks fifth in Leinster, including all Dublin districts.

Meanwhile, vacancy rates in Mullingar lie at 13.2%, also unchanged from last year, while in Moate the rate is 17%, slightly up from 16.8% in 2023.

The national average rose 0.3 percentage points from last year, marking another year of increase in the rate and the highest it has been since the report’s introduction in 2013.

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, Longford, at 30.2%. 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 which 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.”