5 Common Types of Commercial Air Conditioning Systems Explained: Pros, Cons, and Where Each Works Best

Choosing the right air conditioning system is your most important decision as a facility manager or business owner. Your choice impacts energy costs, indoor air quality, and overall building efficiency, both in the short and long term.

Before making a final choice, you must consider the size of your property, its layout, occupancy patterns, and specific business operations.

In this guide, I’ll discuss five of the most common commercial HVAC systems, explaining how they work, where they work best, and what to consider before installing one.

5 Common Types of Commercial Air Conditioning Systems

Here are the five main types of commercial air conditioners

1. Single-Split Systems 

A single-split system is the most basic and widely used commercial HVAC configuration. It has two main parts: one indoor unit and one outdoor unit. The indoor unit handles the air inside, while the outdoor unit manages the heat from the space. Refrigerant lines connect the two, and together they cool the space efficiently. 

This system’s simplicity makes it ideal for small businesses with basic cooling needs. Each indoor-outdoor pair functions independently, allowing you to cool specific areas without investing in a comprehensive system for the entire building. So, if you want to cool multiple rooms or zones, you’ll need more than one unit.

Where Single-Split Systems Work Best

Single-split systems are well-suited for smaller commercial spaces that don’t require complex zoning or advanced energy management. Common applications include:

  • Small offices
  • Retail shops
  • Cafés or bakeries
  • Medical or dental suites
  • Server rooms with specific cooling needs

Advantages and Limitations of Single-Split Systems

While single-split systems are simple in design, they offer several practical benefits for small-scale commercial spaces. Their affordability and ease of installation make them a popular choice for straightforward cooling needs. Here’s a closer look at what they do well—and where they may fall short:

Pros  

  • Affordable and easy to install
  • Great for small spaces like offices or retail shops
  • Easy to maintain and replace individual units
  • Simple setup with minimal disruption
  • Reliable performance for dedicated cooling areas

Cons: 

  • Requires one outdoor unit per indoor unit
  • It can clutter the building’s exteriors if many units are added
  • Not ideal for growing businesses or multi-zone buildings
  • Lacks advanced energy-saving features

2. Multi-Split Systems 

A multi-split system works like a single-split setup. However, there’s one big difference: you can connect several indoor units to just one outdoor unit. This way, you can cool several distinct zones while minimizing the footprint of exterior equipment. This means your exterior walls and rooftop are cleaner and less crowded. 

Each indoor unit can also operate independently to provide customized temperature control across different areas.

Most systems support two to nine indoor units per outdoor unit, which is ideal for growing businesses or those that need to cool separate areas at different temperatures.

Where Multi-Split Systems Work Best

Multi-split systems work well in medium-sized commercial environments with multiple distinct zones requiring different temperature settings. For example: 

  • Offices with private workspaces and shared areas
  • Restaurants with separate dining rooms, kitchens, and storage
  • Clinics or wellness centers with individual treatment rooms
  • Boutique hotels with guest-controlled room temperatures
  • Retail shops with varying heat loads in different departments

Advantages and Limitations of Multi-Split Systems

Like all HVAC setups, multi-split systems offer unique benefits—and a few challenges. They’re a smart choice for many commercial spaces but may require more careful planning during installation. Here’s what to consider:

 Pros

  • One outdoor unit can serve multiple indoor zones
  • Reduces outdoor equipment clutter
  • Allows for individual temperature control in each zone
  • Offers energy savings by turning off unused zones
  • Quieter indoors since the compressor stays outside

Cons

  • Higher upfront cost than single-split systems
  • Installation can be more complex, especially with many indoor units
  • Requires proper planning to match capacity across all connected units
  • Not ideal for vast spaces that need extensive climate control

3. Variable Refrigerant Flow (VRF/VRV) 

Variable Refrigerant Flow (VRF) systems, sometimes called Variable Refrigerant Volume (VRV) systems, are one of the most technologically advanced commercial HVAC solutions available. The system uses one outdoor unit to deliver the exact amount of refrigerant needed to multiple indoor units. 

Unlike traditional systems that turn fully on or off, VRF systems adjust their output based on real-time needs. The technology relies on inverter-driven compressors, which can run at different speeds instead of cycling on and off. That allows the system to respond smoothly to temperature changes and reduce energy waste, resulting in better comfort and lower energy use.

Types: Heat Recovery vs. Heat Pump

VRF systems come in two main configurations, each designed to meet different building demands. Understanding how these systems operate is key to choosing the right setup for your space. Below, we break down the core differences between heat pump and heat recovery VRF systems. 

  • Heat Pump VRF: 

Heat pump VRF systems can provide either heating or cooling to all zones, but the entire system must operate in the same mode simultaneously. They work well in buildings with consistent heating or cooling needs across all zones.

  • Heat Recovery VRF: 

These offer some flexibility: Some units can cool, while others heat simultaneously. This is ideal for buildings with mixed needs or varied exposures (north vs. south-facing rooms). 

For example, a heat recovery system could capture excess heat from server rooms or south-facing offices and redistribute it to northern zones, all while still providing cooling where needed.

Where VRF Systems Work Best

VRF technology is designed for dynamic environments where heating and cooling demands vary by zone. These systems are a strong fit for the following building types:

  • Hotels with individually controlled guest rooms
  • Office buildings with multiple tenants or zones
  • Healthcare centers and labs need precise climate control
  • Schools and universities with classrooms, gyms, and admin areas
  • Historic properties where ductwork is limited or impractical
  • Mixed-use buildings that combine residential, retail, and office spaces

Advantages and Limitations of VRF Systems

Like any HVAC solution, VRF systems come with their own set of advantages and limitations. Here’s a quick breakdown to help you evaluate if they’re the right fit for your building:

Pros  

  • Highly energy efficient due to variable-speed compressors
  • Provides zone-by-zone temperature control
  • Heat recovery options offer simultaneous heating and cooling
  • Great for large or multi-use buildings
  • Quiet, flexible, and space-saving design

Cons 

  • Higher upfront cost compared to other systems
  • Installation and setup can be complex
  • Requires experienced technicians for maintenance and repairs
  • Not always cost-effective for small or single-zone spaces

4. Variable Air Volume (VAV) Systems 

Variable Air Volume (VAV) systems offer a centralized approach to commercial air conditioning. They use one central air handler to supply cooled air through a network of ducts. Each area or zone has its own VAV terminal or box that controls how much air it receives based on thermostat readings, depending on the temperature needed at any given time.

So, while the air temperature stays constant, the airflow adjusts to maintain comfort. By adjusting airflow instead of temperature, the system delivers targeted comfort while reducing energy use and mechanical strain.

Where VAV Systems Work Best:

  • Multi-story office buildings
  • Government or municipal buildings
  • Schools and universities
  • Shopping centers and large retail stores
  • Labs or facilities that need tight climate control
  • Convention centers and auditoriums

Advantages and Limitations of VAV Systems

As with any HVAC solution, VAV systems come with both strengths and limitations. Their performance shines in large, centrally managed buildings, but they may not be practical in every scenario. Here’s a quick look at the key benefits and potential trade-offs:

Pros

  • Excellent zone-by-zone airflow control
  • Energy-efficient operation based on actual demand
  • Works well with centralized building systems
  • Compatible with building automation tools
  • Provides stable temperatures and improved air quality

Cons

  • Requires extensive ductwork and ceiling space
  • Higher upfront installation costs
  • Less flexible than decentralized systems
  • Not ideal for older buildings or layouts with limited infrastructure

5. Packaged HVAC Systems 

Packaged HVAC systems combine all essential components (compressor, condenser, evaporator, and air handler) into a single, self-contained unit. This approach eliminates the need for separate indoor and outdoor equipment.

These units are typically installed on rooftops or concrete pads next to buildings and are connected to the interior via ductwork to distribute conditioned air.

Packaged systems can be configured for cooling only, with electric heat, gas/electric combinations, or heat pump functionality, depending on climate and building needs. They are commonly used when indoor space is limited or in buildings that prioritize fast deployment and easy maintenance access.

Where Packaged HVAC Systems Work Best

Packaged systems are especially useful when simplicity, speed, and space-saving design are top priorities. Because all components are housed in a single unit, these systems are often deployed in commercial spaces where indoor mechanical room access is limited. Below are some of the most common applications.

  • One-story retail stores and strip malls
  • Fast food restaurants or cafés
  • Small to medium-sized office buildings
  • Warehouses with attached office spaces
  • Schools and churches with simple layouts

Types of Packaged HVAC Systems

A few common types of HVAC packaged units meet different commercial requirements. Each version has its strengths, depending on your location and comfort needs. They include:

  • Packaged air conditioners—these are for cooling only. They are often paired with separate heating systems for complete year-round comfort. They typically connect to pre-existing ductwork and are the simplest packaged option.
  • Packaged heat pumps provide both heating and cooling in one system. They’re best suited for moderate climates that don’t experience extreme heat or cold.
  • Packaged gas/electric systems combine electric cooling with gas-powered heating. They are great for regions with cold winters where heat pump efficiency might decrease in extreme temperatures.

For a versatile solution, consider the Airrex AHSC-18P Portable Heat Pump System, which offers heating and cooling capabilities.

Advantages and Limitations of Packaged HVAC Systems

As with any system, packaged HVAC units offer both advantages and limitations. Their self-contained design makes them appealing for many commercial settings, but they may not be ideal for every building type. Here’s a quick look at what to expect.

Pros: 

  • All-in-one design simplifies installation and maintenance.
  • Saves indoor space by placing equipment outside
  • Reduces mechanical clutter inside the building
  • Lower upfront installation costs for basic setups
  • Easy access for servicing without disrupting indoor spaces

Cons

  •  Less energy-efficient than more advanced systems
  • May require crane access for rooftop installations
  • Less flexible when it comes to zoning and control
  • Not ideal for large or complex buildings with varied needs

How to Choose the Right Type of Commercial HVAC System

Picking the right commercial air conditioning system involves choosing something that works for your building, budget, and long-term goals. To get it right, there are a few key factors worth thinking through before you decide:

1. Building Size and Layout: 

Building size and layout play a big role in determining the type of HVAC system that will deliver efficient, even cooling. For example, a single-floor retail shop doesn’t need the same setup as a multi-story office building with multiple departments.Smaller buildings usually do well with packaged or split systems. 

Larger, more complex layouts, on the other hand, may need a VRF or VAV system that can serve multiple zones simultaneously.

2. Cooling demands

Cooling demands also vary depending on how the space is used. Ask yourself important questions. Is your building packed with people during the day? Do you have heat-generating equipment? These things impact how much cooling you need and where you need it. 

A server room, for instance, generates constant heat and requires precise, around-the-clock cooling, often best handled by dedicated split systems or spot coolers. 

In contrast, a conference hall or auditorium may have intermittent high-load periods, making systems like VAV or VRF more suitable because they can scale output based on occupancy and usage. 

An HVAC contractor can run a load calculation to ensure that the system you choose is suitable.

3. Efficiency and budget

Efficiency and budget are always part of the conversation. It’s easy to focus on the upfront cost, but looking at long-term value is also smart. Systems with higher efficiency ratings might cost more initially, but save a lot of energy and maintenance over the years. A good way to compare options is to weigh the full cost of ownership over 10 to 20 years, not just the price tag today.

4. Growth Plans

Growth plans should also shape your decision. If your business is expanding or your space might change in the next few years, it’s worth investing in a system that can grow with you. Modular or scalable options make it easier to add capacity later without replacing everything.

5. Local Climate

Local climate matters more than most people think. In places with changing seasons, a unit that handles heating and cooling efficiently will serve you best all year round. Integrating dehumidification solutions like the Ebac CD60 Industrial Dehumidifier can improve HVAC system efficiency in humid climates. 

HVAC Maintenance Tips for Commercial Buildings

Proper maintenance is one of the most critical yet often overlooked aspects of commercial HVAC operations. Regular preventative maintenance has multiple benefits that directly impact your business operations and profitability.

Proper maintenance increases your system’s longevity significantly. Regular service helps components reach or exceed their expected useful life, delaying costly replacement projects. This extended equipment lifespan improves return on investment and reduces capital expenditure frequency.

Here are some maintenance tips to keep your unit running: 

  • Clean indoor and outdoor coils to keep airflow strong and energy use low. Regular replacement of filters, such as the Novatek General Purpose Filter Kit, ensures optimal air filtration maintenance.
  • Flush drain lines and pans to prevent clogs and water damage. This simple but effective maintenance task helps prevent costly water damage and unhealthy microbial contamination.
  • Tighten electrical connections and test components for early signs of failure. Loose connections create resistance that generates heat and accelerates component deterioration.
  • Check refrigerant levels and look for leaks that could hurt performance. Both undercharged and overcharged conditions reduce efficiency and potentially damage expensive compressors.
  • Schedule professional complete system inspections twice yearly (ideally in spring and fall) to prepare for seasonal shifts. This will verify the proper operation of all components, identify wear indicators, and address minor issues before they become major problems.
  • Devices like air scrubbers can be used to improve indoor air quality.

Conclusion

Choosing the right commercial HVAC system is about creating an environment that supports your business goals and keeps everyone comfortable year-round. The best system will fit your building today and support your needs as your operations grow and change.

Take the time to think through your building layout, energy goals, maintenance capacity, and budget. Don’t just go for the cheapest option; look at long-term value and how the system will perform five, ten, or even twenty years from now.

The best way to make the right decision is to talk to an experienced HVAC professional. A qualified technician can run accurate load calculations, explore all your options, and help you build a plan that balances performance, efficiency, and flexibility.

Ready to explore your options? Check out our commercial air conditioner collection

About The Author

Aaron Dewit, the author of this content section at Commercial Cleaning Depot, brings over 9 years of hands-on commercial cleaning equipment expertise as the lead content specialist. Working directly with manufacturers and facility managers across diverse industries, Aaron combines practical experience with extensive product testing to provide trustworthy, evidence-based guidance. His commitment to thorough research and real-world equipment evaluation ensures readers receive reliable, actionable advice for their specific cleaning challenges.