The period between Christmas and Chinese New Year (CNY) presents a unique challenge for corporate real estate (CRE) professionals operating in East Asia.
Overlapping international and regional holidays during this time can slow business activity to a crawl, creating an awkward lull. In 2025, Chinese New Year falls on 29 January, meaning that the business slowdown could stretch from late December through to early February.
Understanding how to navigate this period is important for CRE professionals looking to maintain momentum and prepare for the post-CNY surge.
Understanding the Seasonal Slowdown
1. A Time of Misaligned Priorities
The holiday slowdown begins with Christmas, an increasingly popular celebration across Asia. While not every country in the region takes a Christmas break, many multinational corporations with Western ties reduce operations, as headquarters in Europe or North America close for the festive season. This is quickly followed by New Year’s Day, which is widely observed across the globe.
In East Asia, businesses simultaneously begin preparations for the Lunar New Year, the most significant cultural event of the year. For many organisations, this means scaling back operations, with employees taking extended leave and suppliers winding down production in the weeks leading up to the holiday.
For CRE professionals, this misalignment of holiday schedules can lead to significant delays in decision-making and operations.
2. Impact on Transactions
One of the clearest impacts of this lull is on transactions and leasing activity. Lease negotiations and renewals often stall as key decision-makers are unavailable. Site visits, an essential part of the leasing process, are also harder to schedule as prospective tenants and brokers focus on end-of-year targets or holiday plans. Additionally, the early January return to work often comes with a sense of inertia, as businesses ease back into routine before gearing up for CNY celebrations.
3. Project Timelines
Construction and fit-out projects, which are critical components of CRE operations, can also face setbacks during this period. Contractors and suppliers may operate at reduced capacity or shut down entirely in the lead-up to Chinese New Year. This not only delays ongoing projects but can also push back timelines for new developments well into February or March.
Challenges in Corporate Real Estate
1. Lease Deadlines and Renewals
For some businesses, leases are aligned with the calendar year, creating a rush to finalise agreements in December. However, the transition to the new year often brings a lull as focus shifts towards wrapping up financial reporting and preparing for CNY festivities. This dynamic can lead to a standstill in lease negotiations and renewals, particularly for multinational tenants relying on input from Western headquarters still recovering from their holiday break.
2. Delayed Decision-Making
CRE decisions often require input from multiple stakeholders, including regional and global teams. The misalignment of holiday schedules means approvals that typically take days may stretch into weeks, creating a bottleneck for transactions, relocations, or expansions. For landlords and tenants alike, these delays can disrupt planning and create uncertainty.
3. Market Uncertainty
With fewer active players in the market, it can be difficult to gauge trends and demand accurately during this period. This lack of activity can be particularly challenging for CRE professionals trying to assess rental rates, availability, or tenant interest. The result is often a more cautious market until after CNY, when activity typically picks up.
4. Supply Chain Bottlenecks
Manufacturers and suppliers in the CRE industry also experience significant disruptions during this time. Furniture, fixtures, and materials essential for office fit-outs and renovations may face delayed production and delivery schedules. Suppliers often close or operate with reduced capacity during the lead-up to CNY, leading to longer lead times. For CRE professionals, these bottlenecks can create cascading delays in project timelines, affecting landlords and tenants alike.
Opportunities in the Lull
While the holiday lull presents challenges, it also offers opportunities for forward-thinking teams. By using this downtime strategically, businesses can set themselves up for success once the market regains momentum.
1. Strategic Planning
The quieter period between Christmas and Chinese New Year is an ideal time for strategic reflection. CRE professionals can use this time to:
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- Review portfolio performance from the previous year.
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- Assess market trends and identify emerging opportunities.
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- Refine strategies to align with anticipated post-CNY activity.
For example, analysing data on occupancy rates, rental trends, and tenant behaviour during this period can provide valuable insights for future planning.
2. Preparing for Post-Lull Demand
The post-CNY period often sees a surge in activity as businesses return to full capacity. CRE teams can use the downtime to:
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- Ensure properties are market-ready by completing maintenance or upgrades.
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- Optimise marketing campaigns to attract tenants.
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- Prepare leasing strategies and promotional content to capitalise on renewed tenant interest.
3. Leveraging PropTech
Digital tools and automation can play a crucial role in bridging operational gaps during the holiday lull. From lease tracking and property management systems to virtual site tours, technology can help maintain momentum even when in-person activities are limited. PropTech solutions can also streamline communication with tenants and stakeholders, reducing the impact of delayed responses.
4. Coordinating with Suppliers
The lull is an opportunity to plan and streamline engagement and workflow strategies with suppliers ahead of the post-CNY surge. This time can be used to:
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- Agree and lock in production schedules and delivery timelines before the holiday shutdown.
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- Build stronger relationships with key manufacturers to secure priority access once operations resume.
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- Explore local sourcing options to mitigate the risk of delays.
A Few Practical Tips
1. Plan Around the Holidays
Advance planning is essential to mitigate the effects of the holiday slowdown. Key steps include:
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- Sharing holiday schedules with clients and partners to manage expectations.
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- Adjusting project timelines and deadlines to account for reduced availability.
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- Encouraging early completion of key tasks before the holiday season begins.
2. Align with Local and Global Teams
Clear communication between regional offices and global headquarters is critical. Ensuring alignment on priorities and timelines can help avoid unnecessary delays in decision-making.
3. Focus on Operational Upgrades
Use the downtime to complete essential maintenance, retrofits, or sustainability upgrades for properties. This can include enhancing energy efficiency, improving HVAC systems, or upgrading shared amenities to attract tenants.
4. Build Agility
Flexibility is key to navigating the holiday lull. Offering short-term leases or co-working solutions can help meet shifting demands and provide tenants with the agility they need during an uncertain period.
5. Collaborate with Suppliers
Ensure ongoing communication with manufacturers and suppliers to minimise disruptions. Consider ordering critical materials well in advance or negotiating contracts that prioritise post-CNY deliveries.
In Summary
The lull between Christmas and Chinese New Year is a challenging time for real estate professionals who operate in many parts of East Asia. Misaligned holiday schedules, delayed decision-making, and reduced market activity can disrupt operations and create uncertainty. For manufacturers and suppliers in the CRE industry, the holiday season adds another layer of complexity, with production slowdowns and logistical bottlenecks impacting project timelines.
However, with proactive planning and a strategic approach, this period can also be an opportunity for review, preparation, and relationship-building. By leveraging technology, focusing on tenant engagement, and collaborating closely with suppliers, CRE professionals can turn an awkward slowdown into a productive and profitable period. As we approach Chinese New Year on 29 January 2025, the key will be to stay adaptable and forward-looking, ensuring that businesses are well-positioned for what lies ahead.
