Navigating the R410A Refrigerant Phase-Out: What Commercial Building Owners and Buyers Need to Know
Rooftop HVAC - Meridian
The commercial real estate landscape is constantly evolving, and one of the most significant changes on the horizon is the phase-out of R410A refrigerant. As environmental regulations tighten to combat climate change, the U.S. Environmental Protection Agency (EPA) is phasing out high global warming potential (GWP) refrigerants like R410A under the American Innovation and Manufacturing (AIM) Act. This transition, already underway, will have far-reaching implications for commercial building owners and buyers, particularly in terms of compliance, costs, and property value.
Understanding the R410A Phase-Out
R410A, a hydrofluorocarbon (HFC) refrigerant commonly used in commercial HVAC systems, has been a staple in cooling systems for decades due to its efficiency and reliability. However, its high GWP—2,088 times that of carbon dioxide—makes it a significant contributor to climate change. Under the AIM Act, the EPA is phasing out HFCs like R410A to meet global commitments under the Kigali Amendment to the Montreal Protocol.
Key Milestones in the R410A Phase-Out:
2022–2024: Production and consumption of HFCs began declining, with a 10% reduction in 2022 and a 40% reduction by 2024.
2025–2028: The EPA is implementing stricter quotas, reducing HFC production and imports by 70% by 2028.
2036: A near-total phase-out (85% reduction) of high-GWP HFCs, including R410A, is targeted, with limited allowances for specific applications.
For commercial building owners and buyers, this means HVAC systems relying on R410A will become obsolete, requiring retrofits or replacements with systems using low-GWP refrigerants like R32, R454B, or natural alternatives like ammonia.
Impacts on Commercial Building Owners and Buyers
The R410A phase-out presents both challenges and opportunities for commercial real estate stakeholders. Here’s how it affects you:
Rising Costs for Maintenance and Repairs As R410A production decreases, its availability will dwindle, driving up costs for refrigerant recharges and repairs. Older HVAC systems designed for R410A may require costly retrofits to accommodate new refrigerants, which often involve replacing critical components like compressors or heat exchangers. For building owners, this could mean unexpected maintenance expenses, while buyers may face hidden liabilities when acquiring properties with outdated systems.
Compliance with Environmental Regulations The EPA’s regulations require proper handling, recycling, and disposal of R410A to prevent environmental harm. Non-compliance can result in fines or legal liabilities, particularly during property transactions. Buyers conducting due diligence must ensure that HVAC systems meet current and future regulatory standards, while owners need to maintain compliance to avoid penalties and preserve property value.
Impact on Property Value and Marketability Properties with R410A-based HVAC systems may face reduced marketability as buyers prioritize energy-efficient, compliant buildings. Upgrading to low-GWP systems can enhance a property’s appeal, attract environmentally conscious tenants, and align with green certifications like LEED or ENERGY STAR. Conversely, outdated systems could lower valuations, especially if significant retrofit costs are anticipated.
Energy Efficiency and Operational Savings Newer, low-GWP refrigerants and modern HVAC systems are often more energy-efficient, reducing utility costs and carbon footprints. For owners, upgrading systems can lead to long-term savings and improved tenant satisfaction. For buyers, investing in properties with updated systems minimizes future capital expenditures and enhances ROI.
How Calibre Can Help You Navigate the Transition
At Calibre Commercial Building Inspections, we understand that the R410A phase-out adds complexity to commercial real estate decisions. Our integrated due diligence services—Phase I ESAs, cost-to-cure reports, and commercial building inspections—provide the insights you need to manage risks and capitalize on opportunities.
Commercial Building Inspections: Our CCPIA- and ICC-certified inspectors conduct thorough assessments of HVAC systems, using advanced tools like thermal imaging to evaluate performance, condition, and compatibility with new refrigerants. We identify whether systems can be retrofitted or require replacement, providing actionable recommendations tailored to your property’s needs.
Cost-to-Cure Reports: Our cost-to-cure reports provide detailed estimates for retrofitting or replacing R410A-based HVAC systems. We analyze the scope of work—whether it’s a full system replacement or a retrofit for low-GWP refrigerants—and provide itemized costs, timelines, and contractor recommendations. This transparency helps owners budget for upgrades and buyers negotiate better terms or seller concessions, ensuring financial predictability.
Steps to Prepare for the R410A Phase-Out
To stay ahead of the R410A phase-out, consider these proactive steps:
Assess Your HVAC Systems: Schedule a Calibre building inspection to evaluate the condition and refrigerant type of your HVAC equipment.
Budget for Upgrades: Use our cost-to-cure reports to plan for retrofits or replacements, factoring in local labor and material costs.
Explore Incentives: Research federal, state, or utility rebates for upgrading to energy-efficient, low-GWP systems.
Stay Ahead with Calibre
The R410A phase-out is a challenge, but it’s also an opportunity to enhance your property’s value, efficiency, and compliance. At Calibre Commercial Building Inspections, we’re committed to helping commercial building owners and make informed decisions. Our expert team, advanced technology, and local market knowledge ensure you have the tools to navigate this transition with confidence.
Ready to assess your property’s readiness for the R410A phase-out? Contact us today at (208) 305-6245 or schedule@calibrecbi.com (to schedule a consultation. Let’s work together to protect your investment’s bottom line and position your property for long-term success.