CHQ, the retail complex owned by the DDDA, which expected the ground floor to be fully let by the end of last year: 11 of the 26 units there are vacant

CHQ, the €50m retail complex owned by the state through the Dublin Docklands Development Authority (DDDA), now has a vacancy rate of more than 40% after two more tenants shut their doors.

The closures mean that 11 of the 26 retail units on the main ground floor are empty, with another temporarily closed "due to unforeseen circumstances". The DDDA had said last year that it expected the ground floor to be fully let by the end of 2008. One of the vacant units is reserved. Other units in the centre have never opened.

There is also a gallery space that is let to artists by the DDDA for regular exhibitions and a spokeswoman for the authority said they "continue to accommodate events within the building".

Retail sources said tenants are being offered units in the centre free of rent for several years in return for signing a long lease.

"The specific terms of lettings and payment schedules with tenants at CHQ are confidential to the landlord and tenant," the spokeswoman said.

In the run-up to the opening of the centre the DDDA targeted retailers such as Harvey Nichols, Armani, Gucci, Zegna, Ralph Lauren, Tiffany, Agent Provocateur, Nicole Fahri, Space NK, Paul Smith and Joseph. None opened in the centre. The most recent letting at CHQ was for a pilates studio.

"The letting strategy remains the same, focusing on quality retail, restaurant and leisure offerings," the spokeswoman said.