The Hidden Goldmine in Vacant Properties That Everyone’s Overlooking—Are You Ready to Cash In?
You ever walk down a bustling street only to spot a “For Lease” sign plastered on what used to be the town’s go-to coffee joint or favorite boutique? Yeah, it’s a scenario that’s becoming way too common — over one in seven commercial properties in Ireland stand empty, just sitting there like awkward wallflowers at a party no one invited them to. According to GeoDirectory’s latest report, a staggering 14.5% of commercial spaces were vacant in 2026’s second quarter. That’s a whole lot of unrealized potential. Now, ask yourself this — what’s the game plan here? Do we keep these prime spots frozen in a time warp, or can savvy business minds and creative thinkers flip the script and breathe life back into these silent addresses? From the ambitious Reimagine Hometown Architect initiative to the gritty realities of retrofitting aged buildings, the answers are anything but simple. And if you think slashing rents or plopping art studios in empty offices is the silver bullet, think again — the economics, legal hurdles, and evolving market needs paint a far more tangled picture. Stick around as we slice through the jargon and explore what business leaders really believe should be done with these ghostly commercial spaces — because this isn’t just about empty buildings, it’s about reimagining the future of our communities and economies. LEARN MORE
With over one in seven commercial properties lying vacant, what do business leaders believe should be done with the space? Alanna Gallagher finds out
A recent report on commercial vacancy rates by GeoDirectory showed 14.5 per cent of stock was empty in the second quarter of 2026.
While the rate of decline dropped marginally by 0.1 percentage points, the first such decline since reporting on the issue began in 2013, it represents more than one in seven properties lying idle.
It’s an issue that impacts communities as well as business and many solutions have been proffered, most notably the 2023 Irish Architecture Foundation’s Reimagine Hometown Architect initiative.
This programme focused on the revitalisation of Ireland’s towns and villages. One of the five selections was Lisdoonvarna, the spa town in Co Clare most famous for its matchmaking festival. It was helmed by native Shelley McNamara, co-founder of Pritker Prize-winning Grafton Architects.
She partnered with the non-profit Common Knowledge and social enterprise Accelerating Change Together (ACT) to create a community-sourced vision for a sustainable, inclusive and thriving future.
This came on the heels of the Town Centre Policy, launched the previous year by the Department of Rural and Community Development and the Gaeltacht and the Department of Housing, Local Government and Heritage.
By the end of 2025, €100,000 had been allocated to a town in every one of the Republic’s 26 counties. Worthy and thought provoking as the projects were, none sufficiently shifted the dial.
When designing with artists in mind you have to reduce commercial expectation, Ray Yeates, head of Dublin City Council’s Arts Office, explains.
“There’s cost on one side and capacity. There’s no absence of people to have a go, but there is an absence of building operators to agree the terms of the lease, deal with the lease and operations. There’s not a lot of money in it. Some people do it. They may want to run a gallery space from within and do a show.”
This, Yeates says, is not a solution for the owner.
“The art[s] community has not a fraction of the economic power of commercial. The rent roll won’t be anything like it should be. That is the beginning and the end of the problem.”
Costs are prohibitive and the stumbling block of the equation. With many of the vacant buildings in need of work, a study by the Society of Chartered Surveyors Ireland (SCSI) last year outlined the real costs of retrofitting office buildings in Ireland as well as the opportunities presented by such projects.
After evaluating seven diverse and then live commercial retrofit case studies, a panel of chartered valuation surveyors found that retrofitting would only be financially viable in three cases without value-added elements.
In short, 57 per cent of the business cases did not make commercial sense.
According to the CSO, almost 60 per cent of offices have a Building Energy Rating (BER) of D1 or lower, Sarah Garry of the Society of Chartered Surveyors Ireland says.
“Unless owners of poor-performing commercial buildings with low BER ratings can find a route to retrofitting, they face the risk of their assets becoming stranded and unoccupiable. If they retrofit they can improve income level from the asset — in some cases the increase in rental income ranged between 40 and 66 per cent — [to] increase its capital value and secure its future,” she says.
“In addition to the sustainable benefits, there are also many social benefits in preventing vacancy and improving the vibrancy and appeal of the area.”
There’s a flight to quality, Garry continues.
“ESG and corporate sustainability mandates are factors feeding into the two tiers within this sector. Buildings with A and B BER ratings are considered safe and very attractive, with reduced times between lettings.”
It gets more tentative for those with a C1 BER and below. Rent-free lettings, lease length and surety of tenancy become more problematic, she says.
“For a lot of large funds there might not be a business case. It’s just going to cost too much.” But for some it will tick the ESG part of the box, she continues.
“If the fund can demonstrate giving back to the community, it ticks the social element. A lot of the funds are very aware of regulation and are in this space to do the work.”
Access to green finance and green lending, where a B3 BER is the minimum requirement, forms part of this approach. That gives the big funds an advantage.
In contrast it is more difficult for domestic or mom and pop landlords to get all their ducks in a row, Garry says.
“There’s a huge amount of property in living above the shop. Parts of our cities and towns have dead zones. It’s expensive to convert.”
There are grants but a lot are retrospectively given, which means the building owner has to carry the costs, she counsels.
“There needs to be staggered funding or [owners being] paid up front.”
By offering a building back to the community, the property gets used. Some PRS units have offered a space for a local football team to have a clubhouse, for example, Garry says.
Yeates has been involved in many projects, including one that matches the needs of communities now on Ireland’s main street.
Manfield Chambers, at number 43-44 O’Connell Street in Dublin 1, offers some 539 square metres of space above the Asics trainers shop, where a pilot scheme between Visual Arts Ireland and building owner Quanta Capital is about to be announced.
Set over four storeys, 21 artists studios have been created. Demand for space was so high, Yeates had 200 applications for the studios.
“The owner discounts the rents,” he explains.
This represents green shoots for a thoroughfare once considered the grandest in the land. It was a similar partnership that saved Dublin’s Temple Bar from becoming a bus depot back in the late 1980s.
By offering tax breaks the area spawned a generation of artists, filmmakers and other creatives who were able to benefit from cheap rents.
Movies were filmed there. Venues opened. Temple Bar turned into a vibrant place where people wanted to hang out and live.
But such vision takes time and capital investment. “It’s a lot of work and all sorts of planning,” Yeates says.
“Arts and culture originally take the space, then there’s a feasibility study. That needs to be implemented. Then the building needs to be converted. You need a business plan. Do we have the budget to convert? It’s the nonglamorous part.”
Yeates says Wilton Park is a great example.
“IPUT [Real Estate] built new buildings and used new spaces to include a gallery in the basement. The real commitment is [made] by the developer, nobody else. The developer can’t wait. They need to make proposals themselves.”
Usually it gets caught up in planning, Yeates laments, citing another project offering 20 more artists spaces on Merchants Quay.
The building comprises the old Saint Anthony’s Theatre at numbers 8 and 9. After 10 years it has finally passed planning at a cost of €9 million.
He’s also across the restoration of St Werburgh’s Church on the street of the same name into a concert venue. Where did the money come from?
“Fifty per cent of it came from a very generous anonymous donor and the balance from the City Capital Programme,” Yeates says.
We have to change the way we look at commercial vacancy, according to estate agent Owen Reilly.
“In many instances the original use has become obsolete. The question that needs to be asked is: what is the best use of the building for the next 30 to 40 years?”
Residential conversion is part of it but not every building can be converted, Reilly explains.
“The floor plate may not be right, some of the space may be at basement level and it can be extremely expensive.
“We need a more flexible approach to mixed use, from co-working spaces to education, medical, childcare, with more incentives. The key words here are ‘flexible approach’.” How do you get building owners on board?
“Provide tax relief, accelerate capital allowances, offer relief on commercial rates and easier planning routes.” Building regulations is another barrier.
“I’ve had clients convert decrepit bedsits into apartments and they will never do it again. It is too onerous. They lost money on the project in the end. Another turned an old retail unit into a triplex. It’s very nicely done, but his heart was broken by the fire officer and the planning delays. He’ll never do it again.”
We’re on a loop, Reilly says.
“How do we make it easier to make these buildings viable? There isn’t enough of a disincentive to do nothing.”
While Reilly has seen very few clients use the Living City Initiative (LCI), Dave McCarthy of commercial agency Drinks Advisor is a fan.
“If you buy a run-down newsagents and turn the space above it into two apartments, you get seven years to write off the costs of the works against tax,” he says of the scheme, which runs in six Irish cities and five of our towns.
“In contrast, if you buy an apartment worth €200,000 and rent it for €20,000 per annum, it will deliver a yield of 10 per cent. [That] appears attractive until those [in] the top tax bracket realise they have to pay tax on that income, which can amount to 50 per cent. With the LCI, you can buy yourself more tax credits.”
With more people working from home, we don’t need as much commercial space. AI is running companies with fewer people, McCarthy points out. At the same time, Gen Z is looking for real tangible experiences.
They want to connect in real life, as the rise in escape rooms and axe throwing demonstrate.
What type of commercial properties will work for such uses? A former pub is a good example, McCarthy says.
“They tend to be in great locations with great parking, which also works for accommodation needs.” In contrast, a warehouse may be less attractive.
“Public transport is a real difficulty. We can build it, but how do get the people to go there?”
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