Understanding HVAC Packaged Units in Commercial Property Assessments
When evaluating a commercial property, understanding the heating, ventilation, and air conditioning (HVAC) systems is essential. One of the most common types of commercial HVAC equipment is the packaged unit. These systems come in a variety of sizes, configurations, and uses, and they play a key role in the overall functionality and efficiency of a building.
At CRUX Environmental and Property Advisors, we have over 11 years of experience completing more than 1,000 projects across 23 states, Mexico, and Canada. Our expertise in property condition reports (PCRs) ensures that HVAC systems—including packaged units—are properly assessed, documented, and evaluated for commercial real estate stakeholders.
What Are HVAC Packaged Units?
A packaged HVAC unit is an all-in-one system that houses the heating and cooling components in a single unit, typically located on the roof or ground outside the building. Unlike split systems, which have separate indoor and outdoor components, packaged units simplify installation and maintenance.
Key characteristics of packaged units include:
Self-contained system: Combines heating, cooling, and sometimes ventilation in one unit
Various fuel types: Can use electricity, natural gas, or a combination
Multiple sizes and capacities: Ranging from small units for retail spaces to large units for industrial buildings
Outdoor installation: Usually on rooftops or adjacent ground pads, saving indoor space
Types of Packaged Units
Packaged units come in different types depending on their application:
Packaged Rooftop Units (RTUs):
Common in commercial and industrial buildings
Can provide both heating and cooling
Often include economizers to improve energy efficiency
Packaged Terminal Units (PTACs):
Typically used in hotels or apartments
Designed for individual room climate control
Packaged Heat Pumps:
Provide both heating and cooling using a single unit
Energy-efficient in moderate climates
Example: In a Boise retail center, an assessor assessed multiple rooftop packaged units ranging from 5 to 25 tons, each serving different sections of the building. Proper evaluation ensured the client understood capacity and replacement timelines.
How Packaged Units Are Assessed During a Property Condition Report
During a property condition report (PCR), HVAC packaged units are evaluated for condition, efficiency, and functionality. CRUX’s approach includes:
1. Visual Inspection
Inspect the exterior for rust, leaks, or structural damage
Check for proper clearances around the unit for airflow
Evaluate condition of access panels, duct connections, and insulation
2. Operational Testing
Turn on units to verify heating and cooling performance
Listen for unusual noises indicating mechanical issues
Check thermostat and control systems for responsiveness
3. Maintenance Documentation Review
Examine service records to determine if units have been regularly maintained
Identify age, replacement history, and warranty coverage
4. System Sizing and Capacity Evaluation
Compare unit size to building load requirements
Identify units that are undersized or oversized, which can affect efficiency and comfort
Case Insight: During a PCR for a multi-tenant office building, an assessor discovered that one rooftop packaged unit was undersized for its floor, causing tenants to complain of inconsistent temperatures. Early identification allowed the building owner to plan for a replacement before more serious HVAC failures occurred.
Common Issues Found in Packaged Units
Commercial HVAC packaged units can encounter a variety of problems:
Refrigerant leaks or improper charge
Electrical component failure
Rust or corrosion due to exposure
Worn belts, bearings, or fan components
Improper airflow due to clogged filters or ductwork
Addressing these issues proactively during a PCR or preventative maintenance program can extend the life of the units and reduce emergency repair costs.
Best Practices for Property Condition Reports of Packaged Units
When evaluating HVAC packaged units in commercial properties, CRUX recommends:
Document each unit clearly: Include make, model, age, and capacity
Assess location and accessibility: Ensure units are safely accessible for inspection and maintenance
Check for compliance: Verify units meet local codes and energy efficiency standards
Identify immediate and long-term needs: Highlight repairs, replacements, and expected service life
Provide actionable recommendations: Suggest maintenance schedules or replacement plans
Why Accurate Assessment Matters
Proper assessment of packaged HVAC units can:
Prevent unexpected equipment failure
Reduce operational costs
Improve tenant comfort and satisfaction
Support accurate property valuation for investors or lenders
Help plan long-term capital improvement budgets
Example: A commercial warehouse client in Nampa relied on a consultants PCR to prioritize replacement of older rooftop units. By planning phased replacements, the owner avoided downtime and minimized budget shocks.
Why Choose CRUX for HVAC Assessments
At CRUX Environmental and Property Advisors, we combine:
Over 11 years of commercial property assessment experience
Expertise in HVAC systems and packaged units
Detailed, actionable property condition reports
Local knowledge of Idaho regulations and building codes
Our goal is to provide investors, lenders, and developers with clear, reliable insights to make informed decisions and protect their investments.
Take Action: Ensure Your HVAC Systems Are Up to Standard
Don’t let undetected HVAC issues put your commercial property at risk. Schedule a property condition report with CRUX to evaluate packaged units, identify maintenance needs, and plan for the future.
Contact CRUX Environmental and Property Advisors today to request a proposal or schedule your assessment. Protect your property, reduce risk, and ensure building comfort for tenants.