Multifamily demand is outpacing supply across the U.S. The greater metropolitan D.C. area is no exception. Occupancy rates in the second quarter reached close to 96%, while net absorption totaled 152,856 units, more than double the 67,268 units delivered during the quarter. 

With demand rising, developers are under pressure to quickly construct more multifamily buildings or convert unused office space to residential. But as they work to speed up delivery, they need to keep one crucial building feature top of mind: the HVAC system. 

From ensuring tenant comfort to improving building performance and longevity, HVAC systems play a key role in a building’s health and success, so choosing the right one matters. 

Brendan Dowd, senior vice president at Boland, said that for HVAC systems in multifamily buildings, “what’s old is new again.” 

“Many buildings are looking into water-source heat pump systems again, which have fallen in popularity in favor of newer systems, like VRF,” Dowd said. “But now, people are realizing that sometimes ‘old-school engineering’ might be the most effective.”

Water-source heat pumps, he said, also help to achieve net-zero energy goals by using exceptionally high energy efficiencies to slash the amount of electricity needed for building heating and cooling. 

Pat Bain, senior account executive at Boland, added that tenant billing is another important consideration for developers and building owners when selecting an HVAC system. Owners often need to meter energy consumption at the individual unit level to accurately allocate costs to tenants. This makes systems that can be served through tenant submeters, such as dedicated residential split systems or individual water-source heat pumps, particularly attractive.        

As building owners increasingly look to transform multifamily rooftops into green spaces and resident amenities, installing a dedicated condensing unit for every apartment can become less desirable. WSHP and variable refrigerant flow systems reduce rooftop equipment and preserve valuable space for tenants.

“Water-source heat pump systems are gaining popularity over VRF because the compressors and most of the electrical systems are located within the individual unit,” Bain said. “We’ve seen an increase in the use of vertical stack-style water-source heat pumps, which are tall, skinny units that can be recessed or furred into the wall, reducing the amount of ceiling space required for ductwork while also minimizing the floor area needed for a dedicated mechanical closet.”

Another consideration owners should keep in mind is an alternative to natural gas. Many regions, including Montgomery County, Maryland, restrict natural gas appliances in most new construction and major renovations. In Maryland, an electrification program enables owners to change their primary source of heat from gas to electric by funding projects for a variety of equipment, including air-source heat pumps, rooftop units, mini-splits, heat pumps and water heaters. EmPOWER Maryland offers one of these utility rebate programs to decommission fossil fuel equipment and add electric alternatives.

Multifamily housing developers are carefully weighing the costs of new, efficient, electric HVAC. Fortunately, a wide variety of incentives and funding mechanisms are available to help reduce costs. Emily Herchenroeder, energy solutions team leader at Boland, encouraged owners to do some research before deciding. The D.C. and Maryland Green Banks offer both financial and technical assistance to owners choosing an HVAC system. The D.C. Sustainable Energy Utility and Dominion Energy offer rebates based on projected kilowatt-hour savings, while Maryland utility programs typically provide incentives on a per-ton basis for equipment that meets minimum efficiency requirements. In some cases, qualifying electrification equipment may be eligible for incentives of up to $1K per ton.

“The technical assistance offered by these organizations is something that is often overlooked,” Herchenroeder said. “You're making these big decisions, so it’s a good idea to work with vendors and equipment providers to help you connect the dots and figure out what works best in your property.” 

Dowd suggested asking your vendor and/or equipment provider about cost, energy usage, available incentives and grants, and the application process for those financing options. He also urged multifamily owners to consider what preventative maintenance may cost over the next several years of a system’s life so a budget can be set.

“A good vendor will be able to provide a final cost estimate that includes recurring service, reducing or eliminating unplanned costs," he said.

Boland is in a unique position. Unlike many companies that provide only one type of equipment, Boland has solutions for all, Bain said. In addition, the company’s service arm enables it to support multifamily developers beyond selection and installation and throughout the building’s life cycle.

“We're not really pushing owners in one direction because it's the only thing we offer,” he said. “We want to lay out all the options, let the engineer or the owner make the best decision for their building, and back up operations with our service team.”

This article was produced in collaboration between Boland and Studio B. Bisnow news staff was not involved in the production of this content.

Studio B is Bisnow’s in-house content and design studio. To learn more about how Studio B can help your team, reach out to studio@bisnow.com.