Will this new lease improve the occupancy rate and projected net operating income (NOI) for the property?

Impact on occupancy and NOI

The 1,700 sq ft street‑level lease at The Hartford adds a new tenant to a space that was previously vacant (or under‑leased). In a mixed‑use, transit‑oriented asset such as The Hartford, even a modest‑sized retail unit represents a meaningful bump in the overall occupancy percentage—likely moving the building’s lease‑up from the high‑80s into the low‑90s % range. Because the lease is for a full‑service, revenue‑generating concept (Perspire Sauna Studio) that commands a premium “well‑being” rent, the incremental net operating income (NOI) is expected to be positive on a per‑square‑foot basis, tightening the property’s cash‑flow profile and supporting the landlord’s projected NOI for the year.

Trading implications

Comstock Holding Companies (CHCI) is a niche player in the D.C.‑metro mixed‑use market, where demand for lifestyle‑oriented retail is still robust despite broader office‑space headwinds. The addition of a health‑and‑recovery tenant aligns with the “experience‑first” tenant mix that investors reward with higher cap rates and stronger rent escalations. The lease therefore removes a drag on the asset’s performance, improves the forward‑looking NOI model that underpins the REIT’s earnings guidance, and should be reflected in a modest upside to the stock. In the short term, the market may price in the news with a 3‑5 % rally on the day of the announcement, while the longer‑term upside will depend on whether Comstock can continue to fill remaining vacancies at similar rent levels. A prudent play would be to go long on CHCI on any pull‑back after the initial bounce, targeting a 5‑8 % gain over the next 4–6 weeks as the NOI uplift filters through earnings releases.