Commercial RTU Replacement Cost: What GTA Property Managers Need to Know
- 13 minutes ago
- 9 min read
If you manage a commercial building in the Greater Toronto Area, you already know that a rooftop unit replacement isn't a simple purchase. It's a multi-phase project involving equipment selection, crane logistics, city permits, electrical work, and coordination with tenants — all while keeping your building operational.
The most common question we hear from property managers is: "How much should I budget for this?"
The honest answer is that it depends on a lot more than the size of the unit. Two buildings on the same street with the same tonnage RTU can have dramatically different project costs based on roof access, electrical infrastructure, curb compatibility, and a dozen other factors.
This guide explains every cost factor involved in a commercial RTU replacement in Ontario — so you can budget accurately, compare contractor quotes intelligently, and avoid the surprises that catch unprepared building owners off guard.
What Is a Commercial Rooftop Unit?
A rooftop unit (RTU) is a packaged heating, cooling, and ventilation system that sits on your building's roof. It combines gas-fired heating, electric cooling, fan distribution, and filtration into a single self-contained cabinet connected to your building's ductwork from above.
RTUs are the most common HVAC system in commercial buildings across the GTA. Strip malls, office buildings, condominiums, industrial facilities, and restaurants all rely on them. They're measured in tons of cooling capacity — one ton equals 12,000 BTU/h — and commercial units typically range from 3 tons for a small retail space up to 25+ tons for a large office or industrial building.
What Drives Commercial RTU Replacement Cost?
This is the most important thing to understand about an RTU replacement: the unit itself is typically only 40 to 60 percent of your total project cost. The rest — and this is where budgets get blown — is everything required to remove the old unit, prepare the site, and install the new one properly.
Here's every cost component that goes into a commercial RTU replacement in the GTA, and why each one matters.
Cost Factor #1: Unit Size and Configuration
The single biggest driver of equipment cost is tonnage. A 3-ton unit serving a small tenant space is a fundamentally different piece of equipment than a 20-ton unit serving a multi-zone office building.
Beyond tonnage, the configuration matters. A basic gas/electric packaged unit costs less than a heat pump model. A unit with an integrated economizer (which uses free outdoor air for cooling when conditions allow) costs more than one without. A unit pre-wired for BAS integration adds to the price, but saves money on controls work during installation.
The key takeaway: don't just compare tonnage when evaluating quotes. Make sure you're comparing the same configuration, efficiency rating, and feature set.
Cost Factor #2: Crane Rental and Rigging
Every rooftop unit needs a crane — both to remove the old one and to set the new one in place. The crane is often one of the most significant line items on the quote, and the cost varies based on several factors:
Building height. A one-story strip mall with parking lot access requires a much smaller crane than a six-story office building on a narrow downtown street.
Unit weight. Larger units require larger cranes with higher lift capacity, which cost more per hour.
Site access. Can the crane set up in a parking lot, or does it need to occupy a city street? Parking lot access is simpler and cheaper. Street access requires permits (more on that below).
Duration. A straightforward swap — old unit off, new unit on — might take a few hours of crane time. A multi-unit replacement or a complex rigging scenario can take a full day or more.
If you're replacing multiple RTUs at the same time, the crane mobilization cost is shared across all units, which can bring down the per-unit cost significantly. This is one reason many property managers plan multi-unit replacements together.
Cost Factor #3: City of Toronto Permits
If the crane needs to occupy any portion of the public right of way — a sidewalk, road lane, or laneway — the crane company must obtain a street occupation permit from the City of Toronto.
The permit process can take 3 to 15 business days depending on the location and complexity. In designated Construction Hub areas (dense zones with overlapping construction activity), the fees are higher than standard locations.
In some cases, Toronto Police paid duty officers are required on-site to manage traffic during the lift. This is especially common on busy arterial roads or near intersections.
The permit and police duty costs are often not included in the HVAC contractor's initial quote — they're handled by the crane company separately. Make sure you ask about this when comparing proposals so you're not caught off guard by an invoice that arrives after the job.
Important: buildings with parking lot or rear access where the crane doesn't touch the public road can often skip this step entirely, which saves both money and weeks of lead time.
Cost Factor #4: The Curb Adapter
This is the single biggest surprise in most RTU replacements, and the one that property managers almost never see coming.
Your existing RTU sits on a metal curb — a rectangular steel frame bolted to your roof deck with a duct opening in the center. When you install a new unit, it has to sit on that same curb and align with the same duct opening.
The problem: manufacturers change unit footprints between model generations. A 10-ton Carrier built in 2008 doesn't have the same dimensions as a 10-ton Carrier built in 2026. And if you're switching brands — say from York to Carrier — the footprints are almost certainly different.
When the new unit doesn't match the old curb, you need a custom curb adapter — a fabricated steel transition piece that bridges the gap between your existing roof opening and the new unit's footprint.
Pro tip: if you're replacing with the same brand and similar model family, there's a better chance the curb dimensions will match. Ask your contractor to verify curb compatibility during the site assessment — before you commit to a specific unit. This single step can save you a significant unexpected cost.
Cost Factor #5: Electrical Work
Modern RTUs often have different electrical requirements than the units they're replacing. Even a "same size" replacement can require electrical modifications if the new unit draws different amperage or uses a different voltage configuration.
Common electrical costs in RTU replacements include:
Disconnect switch replacement — if the existing disconnect doesn't match the new unit's specifications, it needs to be swapped.
Wiring upgrades – old buildings often have undersized conductors that won’t be up to code for your new equipment.
Panel modifications – if your electrical panel is already full, or if your current breaker isn’t compatible with your new unit, you may need some panel work.
New conduit run – if your new unit hooks up electrically in a different place than your old unit, you may need to run new conduit across the roof to reach it.
This isn’t optional… it’s code. Any decent contractor will evaluate your electrical setup on their site visit and price these upgrades into their quote if needed.
Cost Factor #6: Gas Piping
If your new unit isn’t rated for the same BTU input as your old unit (this will usually happen when upgrading to a more efficient model), your gas pipe may need to be resized. An undersized gas pipe can cause performance issues with your unit, causing it to short cycle or not turn on at all when it’s cold outside.
Gas piping adjustments also need to be inspected by TSSA to ensure the work meets Ontario’s gas code. This should be completed by your contractor as part of the job – ensure this is in the scope.
Cost Factor #7: Duct Transitions
If your new unit’s supply and return air openings don’t exactly match up to your existing ductwork, sheet metal transitions will need to be custom made to transition between the two. This is pretty common when changing brands or going to a unit with a different footprint.
Duct transitions can typically be made on the roof or in the contractor’s sheet metal shop and installed on crane day.
Cost Factor #8: Roofing
Removing the old RTU and setting the new one inevitably disturbs the roof membrane around the curb area. Most projects require a roofing contractor to patch, reseal, or flash around the curb to maintain the roof's waterproof integrity.
If the curb is being replaced entirely (rather than adapted), the roofing scope is larger. Your HVAC contractor should coordinate with a roofing sub or handle this in-house — either way, it needs to be in the quote.
Cost Factor #9: Old Unit Disposal and Refrigerant Recovery
The old RTU can't just be dropped into a dumpster. It needs to be removed via crane, transported, and properly disposed of. More importantly, the refrigerant in the old system must be recovered by a certified technician before disposal — this is a legal requirement in Ontario.
If the old unit uses R-22 (the refrigerant phased out under the Montreal Protocol), the recovery process is especially important. Venting refrigerant into the atmosphere is illegal and carries significant fines.
Cost Factor #10: Building Automation Integration
If your building has a Building Automation System (BAS) — such as Carrier i-Vu, Honeywell, Siemens, or Johnson Controls — the new RTU will need to be integrated into the existing control network. This means wiring the unit to controllers, programming it into the BAS software, setting up schedules and alarms, and verifying that it communicates properly with the rest of your system.
BAS integration can be straightforward if the new unit is the same brand as your automation platform (e.g., a new Carrier RTU on a Carrier i-Vu system). It becomes more complex — and more expensive — when the brands don't match and BACnet integration or third-party controllers are required.
How to Compare Contractor Quotes
When you receive quotes from multiple HVAC contractors, the total number at the bottom is meaningless unless you know what's included. A low quote that omits the crane, curb adapter, or electrical work isn't a deal — it's a surprise waiting to happen.
Every quote should clearly itemize:
Equipment make, model, tonnage, and configuration
Crane rental and rigging
Street permits and police duty (if applicable)
Old unit removal, disposal, and refrigerant recovery
Curb adapter or confirmation of curb compatibility
Electrical work (disconnect, wiring, panel modifications)
Gas piping modifications (if needed)
Duct transitions (if needed)
Roofing patch and sealant
Controls/BAS integration (if applicable)
Warranty details — both manufacturer and labour
Project timeline — from order to commissioning
If a contractor gives you a single-line quote with no breakdown, ask for an itemized version. You need to compare apples to apples.
Don't Forget About Energy Rebates
Ontario's Enbridge Commercial and Industrial Prescriptive Incentive Program offers rebates for qualifying high-efficiency commercial HVAC equipment. For 2026, incentive offers are available for equipment purchased between January 1 and September 30, 2026, and installed by October 31, 2026.
Qualifying upgrades can include condensing rooftop units, high-efficiency make-up air systems, and other gas-saving equipment. We help our clients identify eligible programs, complete the paperwork, and ensure equipment specifications meet the incentive requirements.
If you're planning an RTU replacement this year, ask your contractor about rebate eligibility before you finalize the quote. The savings can be significant.
When Should You Replace vs. Repair?
Not every aging RTU needs immediate replacement. Here are the signals that replacement is the better long-term investment:
Age. Most commercial RTUs have a useful life of 15 to 20 years. Beyond that, efficiency drops, parts become harder to source, and repair frequency increases.
Repair frequency. Consider replacement if the unit has failed 3 or more times in the last 12 months.
Repair cost threshold. The industry rule of thumb: if a single repair exceeds 50% of what a replacement would cost, it's time to replace.
Refrigerant type. Units still running on R-22 face escalating refrigerant costs and limited availability. Replacement eliminates this ongoing liability.
Energy performance. If energy bills are climbing despite regular maintenance, the unit's efficiency has degraded beyond what service can restore.
Capital planning. If you're preparing a reserve fund study, refinancing, or selling the property, new HVAC adds real value to your capital asset assessment.
If the unit is under 12 years old and the failure is a single component (compressor, motor, control board), repair is usually the more cost-effective path.
How Burban Handles RTU Replacements
Replacing Commercial Rooftop Units is what Burban Air Systems has done for clients throughout the GTA for over 45 years. Our process is simple:
Visit and Inspection - We come to your building and inspect the existing unit, roof conditions, take curb measurements, electrical capacity and crane access. This visit is always free with no obligation.
System Recommendations - We provide you the correct unit based on your buildings heating and cooling load, your efficiency requirements and your budget. We install Carrier, York, Lennox, Trane, Daikin and many other major manufacturers.
Complete Quote - You are provided a detailed quote with every cost itemized. Everything you see is what you pay - equipment, crane, permits, electrical, curb, roofing disposal, controls there are no surprises.
Permits and Crane - We take care of city permits, street occupation permits, crane scheduling and police duties. You don’t have to worry about taking care of any of this.
Installation - Our 100% in-house staff removes your existing unit and installs the new unit. We make all electrical, gas and duct connections and commission the system. We work with your building staff, your security team and tenants to ensure everyone is comfortable.
Get a Site-Specific Quote
Every building is different, and a blog post can only explain the factors — not give you a number. The best way to get an accurate budget is to have us visit your site.
Call (416) 757-3271 or visit our Contact Page to schedule a free site assessment. We'll evaluate your building, recommend the right system, and provide a detailed, no-obligation quote with every line item visible.
Burban Air Systems Ltd. — Commercial HVAC contractor Toronto, GTA since 1980.
Notes:
This article is for reference purposes only. It is based on normal commercial RTU replacements in the Greater Toronto Area during early 2026. Scope and pricing can vary greatly depending on the equipment chosen, site conditions, building location, project scope, etc. Get in touch for an evaluation of your specific site.
