VRF systems are normally housed on rooftops, which precludes that space from being used for building amenities, such as lounges and gardens. Additionally, there is a misconception that VRF systems do not require ductwork—though ductwork is certainly required to ensure safe air cycling in a building, especially as a result of COVID-inspired code changes to keep building occupants safe.
District energy does not require rooftop chillers or compressors, freeing up rooftop space for amenities, a solar array, or other storage or equipment needs. This also means no rooftop penetration—which can reduce risk of damage due to a compromised building envelope.