The Gateway85 CID is located within the Doraville and Norcross Industrial Real Estate Submarkets, and we have updates on both areas. The industrial real estate sector has outperformed many other sectors, driven by population growth that demands more warehouse and manufacturing facilities, challenges in securing industrial-zoned property and sustained consumer spending.

In Norcross, leasing activity has slowed, with only a few major deals in the past year. Beauty Plus leased 103,385 square feet on Pacific Drive in August and Spoke Custom Products secured 107,000 square feet on Peachtree Industrial Boulevard in March. Although this decline in leasing has increased available space, the limited construction of new properties has kept vacancy rates below the Atlanta-wide market’s 7.4%. Norcross’ vacancy rate of 4.2% is also lower than its 10-year historical average of over 6%.

In Doraville, the scarcity of new developments has contributed to a lower vacancy rate of 5.2%, below the Atlanta average of 7.4%. This limited availability has benefitted landlords, with annual rent increases holding steady at 6.2%. However, this is a notable drop from the peak of 12% in 2022 and is now nearing the ten-year average. The consistently low vacancy rate in Doraville has been largely due to space conversions rather than a spike in demand. While the vacancy rate is near an all-time low, it has risen slightly from 2.5% due to some recent vacancies.

Source: Costar

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