Galway county towns see rise in commercial vacancies

Up to half of all commercial premises in towns around County Galway are lying empty, as rural areas continue to feel the effects of the country’s economic collapse.

And commercial rates, lack of bank lending and major superstores are seen as the key reasons for the huge vacancy rate.

Vacancy rates in Clifden can hit as high as 50%, while the likes of Gort, Tuam, Claregalway and Headford are averaging around 40%. That compares to an overall rate of around 14% in Galway City.

Auctioneer Martin Tyrrell told the Connacht Tribune that the biggest problem for towns like Tuam and Headford are superstores and declining populations.

“It’s a very difficult market. You’d be looking at around 40% vacant. A glaring factor is the growth of major superstores and supermarkets who are bleeding the lifeblood out of all the smaller operators. They just cannot compete, and that’s not unique to Ireland, it’s worldwide.

“Add in rates and all the overheads and banks not lending, and it’s just not viable. There is a reluctance and fear out there,” said Mr Tyrrell.

Meanwhile, in Claregalway, auctioneer David Moggan tells a similar story: “There’s not a whole lot of new business here, and the vacancy rate would be about 40%. Banks are telling us they’re lending, but I beg to differ. It’s not as easy as the banks are making out.

“Rates are a big killer. I can see more and more landlords with empty units – one time they would only be interested in long-term leases (25 years), now they’ll let you in for a year,” said Mr Moggan.

Colm Farrell, an auctioneer in Gort, believes there are too many obstacles to setting up businesses in county towns, and even larger operators are worried.

“There are no incentives, it’s all red tape, and rates are the biggest issue,” he said.

See full story in this week’s Connacht Tribune.