Vacant storefronts and empty offices aren’t just an eyesore. They affect the health of our local economy, the vibrancy of our neighborhoods, and even the legal strength of our zoning laws. A new report looks at vacancy rates in Bellefonte Borough and State College Borough, what’s considered “healthy,” and why local governments need to pay close attention.
Read the full report on vacancy rates here
What Is a Vacancy Rate?
A vacancy rate is the percentage of available commercial or office space that’s sitting empty. A little vacancy is normal—it allows room for new businesses and keeps rents in check. But too much vacancy can signal bigger problems, like economic decline or zoning rules that don’t match today’s needs.
Experts usually say a “healthy” vacancy rate is around 5–10%. Below 5%, there’s not enough flexibility for new businesses. Above 10%, it can mean demand is weak, buildings aren’t being reused, or zoning is too restrictive.
What the Data Shows
Using fire safety permit data from the Centre Region Code Administration, the report found that both boroughs have vacancy issues:
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Bellefonte Borough
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Retail vacancy is 11.55% by square footage, above the healthy range.
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Industrial vacancy is extremely high at 91.10% of square footage, suggesting a big mismatch between available space and market demand.
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Office space looks closer to normal, but still has 11 vacant units.
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State College Borough
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Office space is the biggest concern, with 9.12% of square footage vacant and more than 14% of office units empty.
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Retail vacancy is also high, at 10.75% by square footage.
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Industrial properties reported no vacancies, but the borough has very little industrial space overall.
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It’s important to note that this data may underestimate actual vacancy. The fire safety system only updates when businesses move in or when inspections happen. That means a closed business could still be listed as “occupied.” A street-level survey would likely show even higher vacancy rates.
Why This Matters for Local Zoning
High vacancies don’t just hurt the economy—they also create legal risks for municipalities. Under Pennsylvania’s Municipalities Planning Code, zoning ordinances must serve the public health, safety, and welfare. If zoning rules (like the ban on first-floor residential in downtown areas) contribute to long-term vacancies and blight, they could be challenged in court.
The report also warns that if local governments fail to adapt, the state could step in and take away zoning control. California recently did this with its housing crisis, passing state laws that allow multiple accessory dwelling units (ADUs) on single-family lots, even when local governments opposed it.
What Can Be Done
Local governments in Bellefonte and State College can take steps now to avoid these risks:
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Monitor vacancy rates more accurately with street-level surveys.
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Update zoning to allow more flexible uses in high-vacancy areas—for example, permitting residential units in commercial zones or allowing low-impact industrial uses.
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Work regionally through the Centre Region Comprehensive Plan to share responsibilities and strengthen zoning defensibility.
The Bottom Line
Bellefonte and State College have historic downtowns and strong communities, but vacancy rates are rising above healthy levels. By making proactive zoning changes and tracking vacancies more carefully, local leaders can keep these boroughs vibrant, legally defensible, and resilient for the future.
Read the full report on vacancy rates here
