SUMMARY: Planning HVAC projects in 2026 requires NYC building owners to navigate workforce shortages, evolving regulations, and the complexities of retrofitting older buildings. New refrigerant rules, Local Law 97 requirements, and infrastructure constraints make early planning and thorough system assessments more important than ever. By considering long-term performance, vendor transitions, and lifecycle costs, building owners can ensure their HVAC upgrades remain efficient, compliant, and future-ready.
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Planning HVAC projects in 2026 comes with a unique set of challenges for NYC building owners and facility managers. Between tightening environmental regulations, aging infrastructure, shifting refrigerant standards, and a national shortage of skilled labor, retrofits today require significantly more strategy than they did even a few years ago. These realities make it essential to understand the broader landscape before beginning any HVAC upgrade, replacement, or modernization effort.
To help you prepare, here are five key considerations that should be top-of-mind when mapping out your HVAC projects in 2026 — particularly those involving complex retrofits in New York City’s demanding commercial environment.
Workforce Shortages and Project Scheduling
One of the most pressing retrofit challenges facing NYC in 2026 is the continued shortage of skilled HVAC technicians. The industry has struggled for years to attract new talent, and as a result, the supply of qualified labor is not keeping pace with the increasing demand for energy-efficient upgrades and new-system integrations. This gap impacts project timelines, bid availability, and the overall flexibility building owners have when scheduling major projects.
Because of these constraints, it’s more important than ever to plan ahead. Early scheduling, advanced scoping, and clear communication with your HVAC provider can prevent delays that might otherwise push your project into peak-season bottlenecks. Building owners should also be realistic about project duration, as more complex installations — particularly those involving VRF, heat pumps, or electrical upgrades — may require longer lead times than traditional equipment replacements.
Regulatory Shifts and Compliance Requirements
2026 marks a pivotal year for HVAC regulations, with several federal and local rules converging to impact retrofit planning. The AIM Act requires all new commercial HVAC equipment to use low-GWP refrigerants such as R-454B and R-32 starting January 1, 2026. These new refrigerants come with different operating pressures, safety classifications, and handling requirements, meaning that in many cases, older equipment cannot simply be recharged or repaired, it must be replaced with compliant systems.
Layered on top of this are NYC-specific requirements, including energy codes and carbon-reduction targets like Local Law 97. Retrofits that don’t account for these rules may result in penalties, costly redesigns, or noncompliance issues that affect future building operations. Because of these overlapping regulations, building owners should approach 2026 HVAC projects with a long-term view. It’s essential to ensure system upgrades not only solve today’s needs, but also align with the regulatory landscape that will continue to evolve over the next decade.
THE REFRIGERANT SHORTAGE: WHAT THE INDUSTRY NEEDS TO KNOW
Equipment Transitions in Older NYC Buildings
NYC is home to some of the oldest and most architecturally diverse buildings in the world, which often makes HVAC retrofits more complicated than in newer regions. Older buildings may have limited mechanical room space, outdated electrical capacity, or incompatible ductwork — all of which influence which systems can be installed and how easily they can be integrated. Modern technologies such as VRF systems or hybrid heat pumps may require structural modifications or electrical upgrades before they can be deployed effectively.
This makes upfront planning critical. Before beginning any retrofit, a comprehensive assessment of the building’s existing infrastructure can help identify constraints and determine the most efficient path forward. Understanding airflow pathways, equipment access points, and mechanical clearances early in the process can prevent costly surprises later. In many cases, phased retrofits or hybrid solutions may be necessary to balance modernization with the physical limitations of the structure.
Risks and Realities of Changing HVAC Vendors
Changing HVAC vendors, especially mid-project, can add complexity to any retrofit. Differences in documentation, inconsistent service histories, or gaps in communication can have ripple effects that impact timelines and performance. While switching providers is sometimes necessary, the risk increases when a new team must quickly learn a building’s equipment history, control systems, and operational quirks without the benefit of prior firsthand experience.
Because of this, transitions should be handled deliberately. Building owners should ensure they have access to previous maintenance logs, installation drawings, and system specifications before making the switch. A structured onboarding process can help reduce the learning curve for new technicians and ensure the retrofit continues smoothly. The more clarity and documentation available up front, the more successful the vendor transition, and the overall project, is likely to be.
Long-Term Performance, Efficiency, and ROI
Beyond equipment selection and installation, HVAC retrofits should be evaluated through a long-term performance lens. With rising energy costs, electrification initiatives, and carbon-reduction goals shaping NYC’s building landscape, operational efficiency is now a mission-critical factor. The best HVAC systems are those that not only meet current requirements but also remain cost-effective and compliant over decades of service.
As you plan your 2026 retrofit, consider total lifecycle value. This includes maintenance accessibility, compatibility with future regulations, anticipated repair needs, and energy performance over time. Thoughtful planning today can reduce downtime, extend equipment lifespan, and ultimately deliver much stronger ROI. In many cases, small adjustments in equipment choice, configuration, or maintenance strategy can translate into substantial operational savings.
The Bottom Line: Plan Strategically for 2026 and Beyond
The HVAC landscape in NYC is changing rapidly, and projects in 2026 will require more coordination, foresight, and system knowledge than ever before. By understanding workforce realities, regulatory shifts, building constraints, vendor transition risks, and long-term performance goals, building owners can better manage complexity and set their projects up for success.
Whether you’re preparing for equipment replacement, efficiency upgrades, or a major retrofit, taking a strategic, well-informed approach will help ensure your building’s HVAC systems are reliable, compliant, and built for the future.
With the expertise, trained personnel, and transition planning needed to navigate these retrofit challenges in NYC, Donnelly ensures that projects are completed efficiently, cost-effectively, and with long-term reliability. To solve your retrofit challenges for 2026, contact us today.
FAQ: Retrofit Challenges in NYC for 2026
The top challenges include workforce shortages, stricter building codes, and the transition to new high-efficiency HVAC equipment and low-GWP refrigerants. These factors make retrofits more complex and require experienced contractors to execute properly.
A limited supply of skilled HVAC technicians can lead to longer project timelines and inconsistent workmanship. Working with contractors like Donnelly Mechanical ensures access to rigorously trained technicians who can manage modern retrofit requirements.
The AIM Act requires new commercial HVAC systems to use low-GWP refrigerants such as R-454B and R-32 beginning January 1, 2026. NYC buildings undergoing retrofits must ensure their equipment and systems meet these updated environmental and safety regulations.
Many older buildings have structural constraints that make installing advanced systems — like VRF units or hybrid heat pumps — more challenging. Donnelly Mechanical’s transition team evaluates the entire HVAC system to ensure upgrades are integrated efficiently with minimal disruption.
Donnelly provides a dedicated maintenance transition team that learns the building’s systems in detail, ensuring consistent, cost-effective service. This reduces the uncertainty typically associated with switching vendors and keeps retrofit projects on track.
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