The 50% Repair Test Decides Who Buys the New Rooftop Unit
Paragraph 7.1(d) of the AIR CRE net lease sends the HVAC unit to the landlord if the repair costs more than half of a replacement, and leaves the whole bill with the tenant if it costs less. On a $25,000 rooftop unit with 30 months left, a $200 swing in the repair estimate moves about $7,200. The refrigerant inside that estimate is under a shrinking federal production cap and has no published price, and there is no way to retrofit an R-410A unit off R-410A.