SUWANEE, Georgia — The commercial HVAC landscape is undergoing significant changes in how heating, cooling, and refrigeration systems are designed, installed, and maintained. As the sector adapts to evolving regulations, environmental goals, and new building requirements, HVAC systems are becoming increasingly energy-efficient and responsive to occupant needs. The key trends that follow provide a snapshot of how those shifts are reshaping the future of commercial spaces in 2025.
The Revitalization of Commercial Spaces
In the wake of the commercial real estate rebound from the pandemic, many vacant office buildings, malls, and other commercial spaces are being repurposed for new uses, like multi-family units or flexible office spaces. This transformation presents both challenges and opportunities for the HVAC industry.
With the industry push toward more sustainable and energy-efficient buildings, electrification is becoming central to these renovations. Commercial all-electric heat pump retrofits are emerging as an ideal solution for revitalized spaces, offering significant energy savings by efficiently providing both heating and cooling through a single system.
The increasing adoption of Variable Refrigerant Flow (VRF) heat pump systems benefits environments that require precise temperature control across multiple zones, such as multi-family housing, offices, mixed-use developments, schools, hospitality, and assisted living. These VRF systems offer a flexible and energy-efficient approach to managing diverse building layouts and changing occupancy levels.
Preparing for the Refrigerant Shift
Contractors are bracing for a major regulatory shift that will impact commercial refrigeration systems. Under the American Innovation and Manufacturing (AIM) Act, all new commercial refrigeration equipment must use refrigerants with a low Global Warming Potential (GWP) by Jan. 1, 2026. This transition to low-GWP refrigerants aims to reduce the environmental impact of refrigerants.
Candidates for HVAC refrigerant replacement are A2L refrigerants, such as R-454B and R-32, which have a significantly lower GWP than traditional refrigerants, like R-410A. Here are the most crucial details:
- Impact on new equipment: From 2026 onwards, all new commercial refrigeration systems must use low-GWP refrigerants. Existing equipment can still be installed until the grace period expires, but the exact window will depend on the specific application and equipment regulations;
- Refrigerant characteristics: A2L refrigerants are mildly flammable, requiring changes to safety protocols and installation practices, including advanced leak detection systems and other safety measures; and
- Regulatory enforcement: Commercial HVAC providers must stay ahead of the curve to ensure their equipment complies with these standards to avoid disruptions.
David Archer, vice president of commercial business, Mitsubishi Electric Trane HVAC US (METUS), notes that the upcoming deadline for manufacturers to stop producing high-GWP refrigerants has led to an increased demand for heat pump technology as contractors prepare for the transition. “This uptick in demand reflects the industry’s proactive approach to the shift,” said Archer.
While manufacturers can continue to sell and install commercial systems with non-A2L refrigerants through 2025, the transition requires careful supply planning. “Any time there’s a transition of this scale, it is crucial to ensure a sufficient inventory of both older and newer models to cover market needs,” Archer said.
METUS is committed to developing products that utilize low-GWP refrigerants to uphold the company’s values to drive sustainability and align with global efforts to phase down high-GWP refrigerants as mandated by the AIM Act. In further support of this commitment, METUS is proactively assisting customers through this transition by providing technical guidance, resources, and innovative solutions designed to address the evolving demands of commercial spaces while reducing environmental impact.
The Rise of Hybrid VRF and All-Climate Heat Pump Systems in Commercial Applications
As businesses and building owners seek more efficient ways to manage heating, cooling, and ventilation, the commercial HVAC market is witnessing a surge in demand for Hybrid VRF systems, traditional VRF systems, and all-climate heat pump systems. These technologies are particularly well-suited for schools, hotels, multi-family housing, assisted living centers, office buildings, and even small data centers. The main difference between all-climate heat pumps or VRF systems is that they use refrigerant to cool and heat different building zones. Hybrid VRF systems use water with the building’s zones instead.
VRF and Hybrid VRF systems provide flexible, energy-efficient solutions that offer significant advantages for:
- Hotels, resorts, and schools by managing diverse room temperatures and providing comfort in occupied spaces while minimizing energy consumption; and
- Multi-family and assisted living facilities by meeting complex and diverse heating and cooling needs while lowering energy costs.
For example, Credit Human headquarters in San Antonio implemented a comprehensive zoned VRF heat pump system to maximize sustainability for a new 200,000-square-foot office space, demonstrating how cutting-edge HVAC systems can significantly reduce utility costs and environmental impact.
The small data center and IT room market also benefits from efficient and scalable HVAC solutions like Mitsubishi Electric's s-MEXT product, which offers high-efficiency cooling, humidity control, and scalable capabilities, all crucial for maintaining system reliability and performance.
As demand for efficient HVAC solutions grows, VRF, Hybrid VRF systems, and other cooling applications are pivotal in meeting diverse commercial needs.
“Now more than ever, we’re driven by the need for smarter, more sustainable solutions,” said Archer. “Hybrid VRF and other all-climate heat pump technologies are leading the way, offering businesses the flexibility to meet both performance and environmental goals. At METUS, we are excited to continue delivering these innovative systems so our customers are empowered to stay ahead of regulatory changes while improving the comfort and efficiency of their spaces.”