LOCAL AUTHORITIES SHOULD prioritise planning applications for the residential sector and take into account the large number of vacant buildings currently across the country when considering planning applications, the National Competitiveness and Productivity Council has said.

A new report published today states that vacancy rates across the country in commercial office spaces have risen substantially over the last number of years, driven by the trend for working from home. 

The council said planning authorities should also consider the impact of commercial development in a constrained labour market, given the ongoing housing crisis.

The council said the planning system is an “ongoing area of concern” for the delivery of new housing. It has recommended that once enacted, the Planning and Development Bill should be implemented quickly to reform the system and ensure Ireland remains competitive.

The latest figures estimate that a vacancy rate of 14.3% in commercial office space exists nationally, the highest rate in a decade.

Vacancy rates in Dublin, Cork, Galway and Limerick have increased in recent years, with rates doubling in central Dublin compared to pre-pandemic rates.

The problem is most prevalent in the north-west of the country, with Sligo hitting over 20%. 

The report suggests that a change in “traditional working patterns” brought on by the Covid-19 pandemic has led to the rise in vacant office spaces.

Many of the projects that lie empty were planned or commenced before the pandemic and the emergence of remote or hybrid working. This has led many companies to downsize their office space or relocate elsewhere.

The report says that as a result of these high vacancy rates, local planning authorities should consider the impact of approving new commercial builds and instead place an emphasis on residential housing to ease the strain of the housing crisis.

Re-purposing office space for residential purposes is one option that is proposed by the report.

Non-profit housing body Tuath Housing has previously undertaken two conversion projects in Dublin and Cork, converting vacant office buildings into 121 new homes.

These homes were delivered for less than the typical development cost associated with apartments and were able to house 250 people who were previously on the social housing waiting list.

This construction process can also be significantly more sustainable, with the Housing Agency reporting that re-purposing a vacant building can save up to 73% in carbon emissions related to demolition and re-build.

Office-to-residential conversion projects can also contribute to the rejuvenation of areas that have high rates of vacancy and dereliction.