Three-Unit Storefront
For Sale
$850,000
2978 Rainbow Drive, Decatur, GA 30034
COMMERCIAL - Decatur, GA
Property Size5,300 SF
Lot Size0.80 Acres
Price / SF$160.38
Days on Market266
Property Features for 2978 Rainbow Drive
General Information
Property type
Commercial Sale
Property subtype
Other
Zoning
C-1
Parking
8
Parking features
Parking Lot
Window features
Aluminum Frames
Interior features
Restrooms
Lot features
Shopping Center
View
City
Standard status
Active
APN
15 121 02 008
Size
5,300 SF
Lot size
0.80 Acres
Taxes and HOA fees
Tax Year
2025
Tax Annual Amount
14060
Utilities
Utilities
Water Available
Heating system
Heat Pump (Heating)
Cooling system
Central Air
Building Details
Year built
1979
Floors in Building
1
Flooring type
Tile - Ceramic
Building materials
Brick 3 Sides
Roof type
Asphalt
Listing Agency:
Method Real Estate Advisors
(404) 476-8171
Listed By:
Jaber Obeid
(678) 622-0982
Added: Nov 26, 2025
Changed: Aug 4
Last Checked: Aug 19 at 7:06AM
MLS# 7686381
Copyright © 2026 First Multiple Listing Service, Inc. All rights reserved. All information provided by the listing agent/broker is deemed reliable but is not guaranteed and should be independently verified.
Investment Insights
Based on property information with market context.
This 5,300-square-foot storefront property sits on 0.7968 acres and contains three fully leased units. The existing tenant mix includes a barbershop, hair salon, and tire shop, providing a combination of personal-service and automotive uses within the building. Interior features include restrooms and ceramic tile flooring, while central air and a heat pump support the occupied spaces. The structure was built in 1979 and has brick on three sides with an asphalt roof.
Located at 2978 Rainbow Drive in Decatur, the property offers road frontage, a dedicated parking lot, and water available. The site is zoned C-1 and positioned just south of Druid Hills, with access to major corridors noted in the property information.
Located at 2978 Rainbow Drive in Decatur, the property offers road frontage, a dedicated parking lot, and water available. The site is zoned C-1 and positioned just south of Druid Hills, with access to major corridors noted in the property information.
Key Highlights
- 5,300 SF commercial building on 0.7968 acres
- Three fully leased units with barbershop, hair salon, and tire shop tenants
- C‑1 zoning with road frontage and a parking lot
Financial Insights
Estimated NOI and Cap Rate
NOI = area × lease_rate × (100 − vacancy) / 100 × (1 − expense_ratio). Net Operating Income — what the owner takes home each year before mortgage payments and income tax. Effective rent (asking rent minus vacancy losses) minus operating costs (taxes, insurance, maintenance, management).
NOI / Yr
$74,547
Cap rate = NOI / list price × 100. Capitalization rate — annual return on a fully cash purchase, before financing. NOI divided by price. Higher means more income per dollar invested, but usually also more risk or older condition. 5–8% is typical for stabilized commercial property; double digits often signal distressed deals.
Cap Rate
8.77%
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$1,490,940
$1.5M
Cap Rate 7%
$1,064,957
$1.1M
Cap Rate 9%
$828,300
$828.3K
Market Conditions
NOI Build-Up for 5,300 SF
Vacancy — income lost from leasable area expected to sit empty during the year, subtracted from gross rent.
EGI (Effective Gross Income) — gross rent minus vacancy losses, the realistic income before paying operating costs.
OpEx (Operating Expenses) — recurring costs to operate the property (property tax, insurance, utilities, maintenance, management); excludes financing and capital improvements.
NOI (Net Operating Income) — income a property generates after operating costs but before financing and taxes.
Gross rent
$116.4K $21.96/SF
− Vacancy
−$9.9K −$1.87/SF
EGI
$106.5K $20.09/SF
− OpEx
−$31.9K −$6.03/SF
NOI
$74.5K $14.07/SF
Area
DeKalb County, GA
Vacancy
8.50%
Lease Rate
$21.96 /SF/Yr
Expense Ratio
30.00%
Simulate Cap Rate and NOI
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$1,490,940
Cap Rate 7%
$1,064,957
Cap Rate 9%
$828,300
Alternative Uses
Best Use
Retail
$1.06M
$931.8K – $1.24M
NOI $74,547 @ 7.0% cap · market cap 8.77%
Second Best
Industrial
$461.2K
$403.6K – $538.1K
NOI $32,287 @ 7.0% cap · market cap 3.80%
Theoretical Best
Office A
$1.48M
$1.30M – $1.73M
NOI $103,709 @ 7.0% cap · market cap 12.20%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
100%
Occupancy
Multi-tenant
Tenancy
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
945
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 30034, GA
47,450
Population
20,553
Households
2.3
Avg Household Size
38
Median Age
29%
College-Educated
93%
High-School Grad
16.8 sq mi
ZIP Area
2,824
Density / Sq Mi
$60,551
Median Household Income
$39,134
Median Earnings
$1,427
Median Rent
$228,200
Median Home Value
Market
Vacancy Rate% for Retail in South region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Storefront property - C-1-zoned commercial building with three leased units, parking lot, and central air conditioning.
Where is this storefront property located?
The property is located at 2978 Rainbow Drive Decatur, GA.
What is the asking price?
The asking price for this property is $850,000.
What are key features of this property?
This property features: 5,300 SF commercial building on 0.7968 acres; Three fully leased units with barbershop, hair salon, and tire shop tenants; C‑1 zoning with road frontage and a parking lot
