Salem NH I-93 Corridor Commercial VRF Tenant Improvement — Case Study

Property: Approximately 4,200 sq ft small-to-mid commercial tenant space along I-93 access corridor, Salem NH
Tenant: N.C. (business owner alias — small commercial tenant, HVAC scope entirely tenant-funded)
Scope: Complete tenant improvement HVAC installation replacing existing shared-building rooftop unit allocation for professional/small commercial business (small marketing/design agency); 4-zone Mitsubishi CITY MULTI VRF configuration; NH regulatory framework coordination
Timeline: Diagnostic and design 3 weeks, installation 6 days coordinated with tenant operational schedule
Investment: $32,600 installed, $3,500 NH Saves Commercial rebate, $5,000 estimated IRA 179D commercial building deduction, net $24,100

Situation

N.C. leases approximately 4,200 sq ft commercial tenant space in a multi-tenant commercial building along the I-93 access corridor in Salem NH. The I-93 corridor through Salem NH hosts substantial commercial development including small-to-mid multi-tenant commercial buildings, standalone commercial properties, and small industrial/professional services buildings drawing on the I-93 access convenience for southern New Hampshire and northern Boston metropolitan area business connections.

N.C.’s commercial building context differs from the Rockingham Park redevelopment area (see Rockingham Park case study for comparison): the I-93 corridor commercial buildings tend to be smaller-scale, older construction (1990s-2000s vs Rockingham Park’s 2019+ new construction), and typically operate on shared-building HVAC configurations similar to the Ward Hill Business Park Haverhill commercial building context. N.C.’s specific tenant space is one of 6 tenant suites in the commercial building, with shared-building HVAC infrastructure providing baseline heating and cooling.

N.C.’s business (small marketing/design agency with approximately 8 employees) requires reliable HVAC for consistent workspace comfort and client meetings hosted at the office. The shared-building HVAC infrastructure showed declining reliability with recurring comfort challenges reported by N.C. and multiple other tenants in the building. N.C. considered several options: (1) remain with the shared-building HVAC infrastructure and pursue building owner accountability for the shared system; (2) install dedicated tenant HVAC scope providing independent zone control while shared building HVAC continues to operate for other tenants; (3) negotiate with landlord for coordinated shared-building HVAC replacement (potentially through building-wide TI allowance scope).

N.C. selected option 2 (dedicated tenant HVAC scope) — the shared-building HVAC continues to operate for other tenants who have not yet transitioned to dedicated tenant scope, and N.C.’s specific tenant space is isolated from the shared-building HVAC delivery through the installation. This approach provides N.C. with independent comfort control without requiring building-wide coordination or landlord authorization for building-wide replacement scope.

N.C. requested Rivic assess installation options with priorities: (1) dedicated tenant HVAC providing independent zone control across the small commercial space’s use areas (reception, conference, open workspace, private office, kitchen/break), (2) shared-building HVAC isolation coordination for N.C.’s tenant space specifically, (3) NH regulatory framework coordination applied to commercial tenant scope, (4) NH Saves Commercial rebate coordination for eligible scope.

Diagnostic and Assessment

Andrew Samples conducted the initial diagnostic assessment during scheduled after-hours evening visit. Ryan Sullivan handled commercial VRF configuration specification. Kathleen Brennan coordinated landlord authorization for dedicated tenant HVAC scope and NH regulatory framework coordination.

Key findings: (1) shared-building HVAC infrastructure connects to N.C.’s tenant space through ceiling ductwork with per-suite thermostat control — isolation of N.C.’s tenant space feasible through ductwork disconnection and separate distribution installation, (2) 400A per-tenant electric service adequate for tenant VRF installation with capacity margin, (3) rooftop area available for outdoor condenser placement per landlord approval (obtained through Kathleen’s coordination), (4) tenant space configuration favors 4-zone VRF configuration matching the small commercial use areas, (5) shared-building HVAC continues to operate for other 5 tenant suites; N.C.’s tenant space isolation does not impact other tenants.

ACCA Manual J commercial load calculation determined tenant space cooling load at 88°F summer design of approximately 42,000 BTU/hr and heating load at 4°F winter design of approximately 32,000 BTU/hr.

Solution: 4-Zone Mitsubishi CITY MULTI VRF with Shared-Building Isolation

Rivic recommended Mitsubishi CITY MULTI VRF 4-zone configuration matched to tenant space configuration: (1) reception/waiting area 12,000 BTU/hr concealed ceiling cassette, (2) conference room 12,000 BTU/hr concealed ceiling cassette (variable occupancy 2-8 meeting attendees), (3) open-plan workspace with private office 18,000 BTU/hr concealed ceiling cassette (consistent 6-8 staff plus principal office), (4) kitchen/break area 9,000 BTU/hr concealed ceiling cassette (variable occupancy plus cooking heat load). Total outdoor unit capacity 60,000 BTU/hr matched to Manual J loads.

Rooftop outdoor condenser placement: landlord-approved location following building’s other tenant condenser placement patterns. Refrigerant line-set routing through tenant space ceiling chase.

Shared-building HVAC isolation: ceiling ductwork connections to shared-building HVAC disconnected at tenant space boundary; supply and return grilles from shared-building infrastructure sealed. Shared-building HVAC continues to operate for other 5 tenant suites without impact.

Shared-Building HVAC Isolation Coordination

The shared-building HVAC isolation scope is a specific coordination consideration for tenant installations in multi-tenant buildings where other tenants remain on shared infrastructure. Kathleen Brennan coordinated:

• Building landlord authorization: obtained landlord authorization for tenant space isolation from shared-building infrastructure — typical for landlords receptive to reducing shared-building HVAC operating cost obligation as tenants transition to dedicated scope.
• Building HVAC service contractor coordination: coordinated with building’s shared-building HVAC service contractor to confirm tenant space isolation does not create imbalance in the shared system for other tenants (typical for shared systems with per-suite VAV control — tenant space isolation is straightforward given the existing zone-based control approach).
• Building operating expense adjustment: N.C.’s tenant operating expense allocation for shared-building HVAC reduced or eliminated per lease terms following isolation — specific adjustment depends on individual lease provisions.
• Building ventilation continuity: tenant space ventilation continues to meet building-wide minimum ventilation standards through either (a) continued connection to shared-building ventilation infrastructure separate from heating/cooling (typical for buildings with dedicated ventilation systems), or (b) tenant space dedicated ventilation configuration meeting building code minimum.

Outcome

Installation completed over 6 days coordinated with N.C.’s tenant operational schedule (installation during evenings and weekend with limited weekday operational impact). Post-installation operational verification: dedicated 4-zone VRF configuration delivers substantially improved zone control compared to shared-building HVAC baseline. N.C. reported particular satisfaction with the independent zone control and elimination of shared-system reliability concerns.

Ongoing Operating Cost Change

Post-installation first-year utility monitoring: total electric operating cost approximately $4,800 for combined heating and cooling on N.C.’s dedicated tenant HVAC. Previous shared-building HVAC allocation to N.C. approximately $6,400/year through building operating expense pass-through. Combined operating cost benefit approximately $1,600/year including both reduced tenant HVAC operating cost and reduced building operating expense allocation.

Investment Summary

• Total installation cost: $32,600 (Mitsubishi CITY MULTI 4-zone equipment, installation labor, refrigerant charging, commissioning, shared-building isolation coordination, tenant operational schedule accommodation)
• NH Saves Commercial rebate: $3,500 (typical NH Saves Commercial scope for this installation configuration)
• IRA 179D commercial building deduction: approximately $5,000 estimated tax benefit
• Net investment: $24,100 after NH Saves Commercial and IRA 179D
• Annual operating cost benefit: approximately $1,600/year
• Additional value: zone-level control across 4 distinct use areas; independent thermostat operation; elimination of shared-building HVAC reliability concerns; 12-year Mitsubishi Diamond Contractor warranty

Frequently Asked Questions About This Case Study

Can I install dedicated tenant HVAC scope while other tenants in the building remain on shared-building HVAC?

Yes for tenant spaces in multi-tenant buildings with suitable configuration. Prerequisites: (1) landlord authorization for dedicated tenant scope with shared-building HVAC isolation, (2) building HVAC service contractor confirmation that tenant space isolation does not create imbalance in shared system for other tenants, (3) adequate per-tenant electric service (typical 200-400A for small commercial tenants depending on scope), (4) suitable outdoor condenser placement location per landlord approval, (5) tenant space ventilation continuity meeting building-wide standards through either continued shared ventilation connection or dedicated tenant ventilation. Rivic handles landlord coordination, shared-building HVAC service contractor coordination, and NH regulatory framework coordination as part of installation project management. This approach is distinct from building-wide shared HVAC replacement (see Ward Hill Business Park Haverhill case study) which requires landlord authorization for building-wide scope and tenant coordination across all tenants simultaneously.

How does I-93 corridor Salem NH commercial context differ from Rockingham Park redevelopment area?

Different commercial building age, scope, and configuration typical of the two contexts: (1) I-93 corridor commercial: smaller-scale multi-tenant commercial buildings (typically 8,000-30,000 sq ft total with 4-8 tenant suites), older construction (1990s-2000s typical), shared-building HVAC configurations common, standalone commercial properties along the corridor. (2) Rockingham Park redevelopment: larger-scale mixed-use and commercial development (Tuscan Village and adjacent redevelopment properties), newer construction (2019+ typical), tenant improvement HVAC scope from building shell construction rather than existing shared HVAC replacement, premium commercial positioning. Both contexts represent Salem NH commercial opportunity but with different tenant improvement approaches. I-93 corridor tenant installations typically favor dedicated tenant HVAC replacing shared-building baseline (as in this case study); Rockingham Park redevelopment tenant installations typically favor new-shell tenant HVAC specification (as in the Rockingham Park case study).

Does dedicated tenant HVAC installation reduce my share of building operating expenses?

Typically yes but specific adjustment depends on individual lease provisions. Common approaches: (1) full reduction of tenant HVAC operating expense allocation for shared-building HVAC following isolation (tenant no longer contributes to shared HVAC operating cost); (2) partial reduction reflecting shared-building HVAC continued operation for other tenants (tenant contribution reduced but not eliminated); (3) coordinated lease amendment addressing the changed HVAC configuration (may include other operating expense adjustments). Kathleen Brennan handles lease-related coordination with tenant and building landlord as part of installation project scope, but tenants should consult their specific lease terms and potentially their own attorney for lease amendment scope. N.C.’s specific lease provisions allowed for reduced building HVAC operating expense allocation following isolation, contributing to the annual operating cost benefit reported above.

Why 4 zones for the small commercial tenant space?

4-zone configuration matches N.C.’s tenant space use area requirements: reception/waiting (client-facing area with variable occupancy and aesthetic priority), conference room (variable meeting occupancy 2-8 attendees with rapid occupancy changes), open-plan workspace with adjacent private office (consistent 6-8 staff plus principal), kitchen/break area (variable occupancy plus cooking heat load). Fewer zones (2-3 zone configuration) would require compromising between the distinct use area requirements — typically resulting in either over-conditioning some areas or comfort compromises in others depending on operating priorities. Small commercial tenant spaces with 3-4 distinct use areas typically favor 3-4 zone configurations; larger tenant spaces with 6+ distinct use areas may favor 5-6 zone configurations (see Rockingham Park case study for 6-zone example).

What’s the typical cost range for Salem NH I-93 corridor small commercial tenant HVAC installations?

Typical range: $24,000-$42,000+ depending on tenant space size, zones, equipment tier, and installation complexity. This case study’s $32,600 total reflects Mitsubishi CITY MULTI 4-zone with shared-building isolation coordination. Smaller tenant spaces (1,500-2,500 sq ft with 2-3 zones) typically cost $22,000-$30,000; larger tenant spaces or premium equipment configurations can cost $38,000-$54,000. NH Saves Commercial rebate typically $2,000-$5,000 depending on qualifying scope; IRA 179D commercial building deduction varies based on installation efficiency and total scope. Kathleen Brennan handles NH Saves Commercial and IRA 179D coordination as part of installation project management.

Contact Rivic Heating and Air Conditioning — Salem NH I-93 Corridor Commercial VRF

Salem NH I-93 corridor and other Salem NH small commercial tenant HVAC service including dedicated tenant HVAC installation with shared-building HVAC isolation coordination, multi-zone commercial VRF configuration for small commercial use cases, landlord authorization coordination for dedicated tenant scope, shared-building HVAC service contractor coordination, tenant operational schedule accommodation for installation, NH regulatory framework coordination, NH Saves Commercial rebate coordination, and IRA 179D commercial building deduction coordination all route through our 225 Broadway #306 office in downtown Methuen (8-20 minute drive to Salem NH from Broadway). This case study represents a specific installation completed for N.C.; individual tenant assessments determine equipment specification and installation scope.

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