Case Study: Commercial RTU Replacement Near Ralston Arena
This case study documents a commercial rooftop unit (RTU) replacement for a small retail tenant in a multi-tenant commercial building near Ralston Arena (the 3,500-seat arena that opened in 2012 and hosts the Omaha Lancers junior hockey, concerts, and community events). The 2003 original RTU had reached end-of-life with compressor failure during summer demand; the tenant’s business operations required rapid replacement with minimal disruption. Total project cost $9,400 for new RTU installation with property owner cost-sharing arrangement common in commercial lease structures.
Property and Tenant Situation
The property is a 2003 single-story commercial building near Ralston Arena, approximately 8,500 sq ft total with 5 tenant suites. Equipment situation: one RTU per tenant suite (5 RTUs total, each serving its own suite). The customer business is one of the tenants: small specialty retail occupying 1,800 sq ft suite, currently 6 employees, operating Tuesday-Sunday with extended evening hours during arena event days.
RTU situation:
- 2003 original Trane 5-ton 10 SEER R-22 RTU, 22 years old (substantially beyond commercial RTU lifespan)
- Compressor failure during late July heat: equipment running but not cooling
- Substantial business impact: store unable to maintain comfortable shopping environment during peak season
- Tenant under standard commercial lease with property owner responsibility for HVAC equipment (typical structure for small retail leases)
- Property owner needed prompt resolution given tenant business interruption
Property Owner Coordination
Property owner engaged Andre Patel (Commercial Manager, 16 years) for replacement consultation. Property is owned by small commercial real estate investor with portfolio of 8 properties in Omaha metro area.
Lease Responsibility Discussion
- Property owner responsible for HVAC equipment per lease (capital equipment is property owner responsibility)
- Tenant responsible for routine filter replacement and maintenance plan participation (typically structured as operating expense pass-through)
- Property owner agreed to replacement; tenant agreed to share cost of upgrade to higher efficiency tier (modest tenant contribution for upgraded vs base-level replacement)
Equipment Selection
Three replacement options presented:
- Base tier — standard R-454B RTU — Carrier 5-ton 14 SEER R-454B replacement, $7,400 total. Property owner cost.
- Mid-tier — high-efficiency RTU — Carrier 5-ton 16 SEER R-454B with two-stage compressor, $9,400 total. Property owner $7,400 + tenant $2,000 upgrade contribution.
- Premium tier — variable-capacity heat pump RTU — Carrier 5-ton variable-capacity heat pump, $14,500 total. Property owner $7,400 + tenant $7,100 upgrade contribution (tenant declined this option).
Mid-tier selected based on cost-benefit analysis: meaningful efficiency improvement and longer equipment life at modest tenant contribution, without premium tier cost.
Installation Coordination
Business Hours Considerations
- Tenant operations Tuesday-Sunday with extended hours during arena event days
- Monday closure provided natural installation window
- Installation scheduled for Monday with goal of completion before Tuesday opening
- Tenant notification: 4 days advance notice; tenant coordinated with their landscape/cleaning vendors to avoid same-day overlap
Tenant Communication
- Tenant kept informed throughout dispatch process via email updates
- Property manager coordinated between property owner, tenant, and our scheduling
- Tenant’s primary concern: operational restoration before Tuesday opening (which we accomplished)
- Secondary concern: future reliability with new equipment (which the upgraded efficiency tier addresses through better equipment quality)
Installation Execution
Single Monday installation, 8 hours total:
- Morning — Equipment delivery to roof; crane positioning; old 2003 Trane RTU removal (substantial weight and 22-year cabinet corrosion required careful handling); R-22 refrigerant recovery to EPA Section 608 standards
- Midday — Roof penetration verification (existing curb adequate for new equipment); new Carrier RTU positioning on existing curb; electrical connections; ductwork connections through existing roof penetration
- Afternoon — Refrigerant charging; system startup and commissioning; performance testing across cooling and heating modes (RTU has gas heating section in addition to cooling); two-stage operation verification; tenant walkthrough Monday afternoon with property manager present
Results
- Operational restoration before Tuesday opening — tenant business resumed normal operation with no further disruption
- Modern A2L refrigerant equipment — R-454B refrigerant compliance for 15-20 year equipment lifespan
- Cooling efficiency improvement — 16 SEER2 vs prior 10 SEER produces estimated 38% cooling efficiency improvement (substantial impact on tenant’s operating cost via lease structure)
- Two-stage operation — reduced first-stage capacity for most operation produces longer steady-state cycles with better humidity management (substantial improvement for retail comfort)
- 10-year equipment warranty — manufacturer registered warranty providing protection against premature failure
- OPPD commercial rebate — $400 commercial rebate for qualifying SEER2 16 equipment
- Property owner and tenant satisfaction — clear cost-sharing arrangement, prompt restoration, upgraded equipment quality
Pricing
Total project cost: $9,400
Cost Breakdown
- Carrier 5-ton 16 SEER2 R-454B RTU with two-stage compressor: $5,800
- R-22 refrigerant recovery and disposal: $165
- Crane service for equipment positioning (rooftop): $785
- Roof curb verification and weatherproofing: $385
- Refrigerant charging (R-454B): $285
- Electrical work and connections: $385
- Installation labor (8 hours): $1,285
- Equipment removal and disposal: $315
Cost Allocation
- Property owner contribution: $7,400 (base equipment cost equivalent)
- Tenant contribution: $2,000 (efficiency tier upgrade premium)
- OPPD rebate: -$400 (typically credited to property owner)
- Property owner net cost: $7,000
- Tenant net cost: $2,000
Tenant Benefit Analysis
Tenant’s $2,000 investment for efficiency upgrade:
- Tenant pays utility costs directly per lease structure
- 16 SEER2 vs base 14 SEER produces approximately 12% additional cooling cost reduction
- Two-stage operation produces additional efficiency through longer cycles
- Total efficiency improvement vs base R-454B replacement: estimated 15-18%
- Annual cooling cost reduction estimate: $450-$650 (depending on cooling load and electricity rates)
- Tenant payback period: approximately 3-4 years
- Equipment lifespan 15-20 years; cumulative benefit substantially exceeds investment
Lessons from This Project
- Commercial RTU lease responsibility structures vary; clear lease language prevents disputes during equipment events
- Tenant-property owner cost-sharing arrangements work well for efficiency upgrades where tenant captures utility savings
- 2003-era commercial RTUs (22 years old) are substantially beyond useful life and approaching forced replacement
- Same-day commercial replacement possible with proper coordination of equipment, crane service, and business operations
- Two-stage RTU compressors provide substantial humidity management improvement vs single-stage equipment
- R-22 refrigerant transition affects all 2003-era and earlier commercial equipment; replacement provides current refrigerant compliance
Contact Omaha Heating and Air Conditioning
For Ralston commercial HVAC service, multi-tenant property RTU replacement, property owner and tenant cost-sharing consultation, or commercial equipment selection, call our 24/7 line.
- Emergency Line (24/7): (402) 258-6703
- MUD Gas Emergency: 402-554-7777 (suspected gas leaks)
- 911: for CO detector alarms or fire/smoke situations
- Address: Lake Regency Building, 450 Regency Pkwy #370, Omaha, NE 68114
- Email: info@omahaheatingairconditioning.xyz
- City of Omaha Mechanical Contractor License: #MC-2014-08847
- EPA Section 608 Universal: #608U-2014-227841