Martin McGowan, who launched his career as a property dealer in Ballybofey, Co Donegal, in 2002, reflects on a time when there was less apprehension surrounding the establishment of new businesses. He characterises the years from 2002 to 2007 as a phase of prosperity, observing that new enterprises were sprouting up everywhere.
Upon learning of Ballybofey’s high commercial vacancy rate, the highest among Irish towns and a figure that rose from slightly below 30 per cent to 33.6 per cent in a year, the funeral director and property dealer didn’t exhibit much surprise. This information was provided by a recent report from GeoDirectory, which was co-founded by An Post and Ordnance Survey Ireland with the aim of creating and maintaining a complete catalogue of commercial and residential structures.
The report discovered that the commercial property vacancy rate nationwide was higher than ever since GeoDirectory began gathering data ten years ago. Following Ballybofey in the list of 80 sampled towns were Edgeworthstown, Co Longford, at a 30.2 per cent vacancy rate and Shannon, Co Clare, at a 29.8 per cent rate.
According to McGowan, the prolonged need for a bypass and subsequent traffic problems in Co Donegal have had significant adverse effects on Ballybofey and its twin town, Stranorlar, located on the other side of the River Finn. He states that the expense of running a business is also making individuals more cautious about initiating new enterprises.
He explains that there was once a sense of impulse amongst retiring professionals such as teachers and police officers, who would often consider embarking on a business venture. However, the rise in expenses such as interest rates, energy charges and wages has deterred these ‘impulsive starters’ who previously had easier access to finances prior to the 2008 crash.
“People showed more courage then as money was more accessible. Nowadays everything is more calculated, more meticulously planned or cautious,” says McGowan, who also operates a property agency. He adds that many of Ballybofey’s vacant shops have been in the same families for generations and they might not feel the need to sell or lease their properties due to a lack of financial stress.
“A good portion of these spaces belong to well-off family owners who aren’t too troubled about renting them out,” he states, a situation that also echoes across many lesser-known towns. Residents have high hopes that the widely anticipated bypass will alleviate the traffic congestion experienced by commuters between Sligo and Letterkenny and Derry – an issue often quoted by locals while discussing the number of closed-down business establishments in Ballybofey-Stranorlar.
“A bypass may be a detriment to smaller towns and villages, but I believe it could be beneficial here,” comments McGowan optimistically. With the green light given for the project this year there is high anticipation for work to begin by 2027.
The prominent discussion in Ballybofey about the recent GeoDirectory Commercial Vacancy Rates Report revolves around its flagship department store, McElhinneys, which sees a substantial number of customers from across Ireland, particularly those preparing for weddings.
“One could be misguided by the headlines and think we’re a no-hopers town, but we have key retailers and employers like McElhinney’s, Mulrines’ juice factory and St Joseph’s hospital,” points out McGowan, “Ballybofey remains vibrant but is heavily dependent on the bypass”. He also mentions that many vacant properties are located outside the town’s Main Street.
The Ballybofey and Stranorlar Chamber of Commerce view also varies from the report, questionning the recency of the data. The study analyzed vacancy rates between the second quarter of 2023 and the second quarter of 2024.
“We’ve seen seven new businesses springing up in recent months,” reports Patten.
John Gallagher, a butcher with a shop near McElhinneys, has fared quite well through various economic declines. His family-run venture celebrated its 40th anniversary on Saturday. He attributes their success to adapting to evolving consumer preferences and placing a strong focus on their farm-to-fork principle – Gallaghers rear their own livestock which they slaughter in their own slaughterhouse.”
Gallagher appreciates the benefits of his business location near a car park and the well-known McElhinneys outlet. Aware that customers are likely to drop by for a convenient meal after bargain hunting, he makes sure to stock up on ready-made meals during McElhinneys sales.
In Gallagher’s view, the deserted units in Ballybofey are especially noticeable during winter when the buildings remain unlit, creating “dark corners throughout the town”. He advocates for the offering of refurbishment grants that would assist in modernizing traditional stores to match the needs of contemporary shoppers. He mentions the tendency of people to opt for retail units on the peripheries of towns where parking is hassle-free.
Gallagher points out the restrictions within these older structures due to the existence of “many pillars and posts” instead of free space. As entrepreneurs age, he remarks, the motivation for owning and updating a business fades and becomes a burden. Gallagher emphasizes the profound history carried by these family businesses, attributing the town’s development to these people rather than his own generation.
According to local pub owner and Fine Gael County Councillor Martin Harley, another potential solution could be to issue obligatory purchase orders to those who allow town centre properties to decay. Harley is of the opinion that if these buildings were subjected to such orders, it could lead to more inhabitants in the town centre. He feels this would undoubtedly be a positive move, helping to initiate a cycle of improvement.
Harley suggests that some property owners may hesitate to put a premises up for sale if it has been within their family for generations. Additionally, he identifies renting a property as somewhat futile; with taxes to be paid, there is little profit to be made. He agrees with Gallagher that the bypass could bring about significant changes to the town with the current population of around 6,000, a number which is doubled when considering the catchment area. Harley also indicates that there are other contributors to the business vacancy rate. He explains that during a recent meeting of Co Donegal vintners, many conversations revolved around the urgency to reduce the VAT rate of 13.5%, suggesting that financial demands could be a significant factor in the closure of pubs and restaurants.
Three decades ago, when the ex-postman opened Harley’s Cheers pub on the main road, there were three fabric stores directly opposite. However, these have all since closed down, with one of the buildings now sitting empty. Harley believes the rise of online shopping greatly contributes to the decline of town centres, as more and more people, especially younger generations, prefer digital purchases.
Harley, as a pub owner, has witnessed firsthand the staffing issues many in the hospitality sector have faced since the onset of Covid-19. Workers are now reluctant to commit to weekend and bank holiday shifts, having had a taste of a different lifestyle. This is an attitude he finds difficult to condemn, particularly now with a total of ten bank holidays in the calendar.
The nearby O’Hehir’s bakery and Gallagher’s butcher shop seem to be doing well in contrast. The bakery’s manager, Shelley O’Brien isn’t shocked to hear that the town has the highest count of empty business units. She notes individuals tend to stay home as prices climb due to inflation, leading to the closure of many businesses. In particular, she mentions that bars are experiencing a difficult time as individuals opt to consume alcohol at home instead.
O’Brien asserts that once the long-awaited, 30-year bypass project is finished, drivers travelling between Sligo and Letterkenny or Derry will be more likely to make pit stops in Ballybofey-Stranorlar. She explains that traffic congestion and parking issues currently make the town a challenge for potential visitors, describing it as a ‘bottleneck town’.