SLOVENIA Trends and Developments Contributed by: Blaž Ogorevc, Miha Štravs and Blaž Murko, Odvetniki Šelih & partnerji, o.p., d.o.o.
reasons such as taxation policy and payroll bur - dens – caused certain multinationals to recon - sider having their regional office in Slovenia. However, with some projects being finished in 2024 (like DCB Montana) or on their way (spear - headed by Vilharia and Emonika), this is finally changing. And this change is more than welcome, since the growing emphasis on sustainability and ESG compliance has become a defining factor in both new developments and tenant requirements. Green certification and high energy performance are increasingly non-negotiable in major leasing decisions. Developers are also paying closer attention to tenant experience, with amenities such as smart building systems, wellness fea - tures and flexible layouts becoming standard in new projects. There is also an uptick in retrofit projects tar - geting older office buildings, especially in sec - ondary locations, which are being repositioned with upgraded mechanical systems and interior redesigns to appeal to smaller, agile tenants who prioritise flexibility over floor space. Expertise in the above services could however also come handy for an investor who – if the rumours turn out to be true and NLB bank decides to put its office building on the market – would be willing to tackle a refurbishment of a 50-year-old build - ing with some 50,000 square metres of usable space in the centre of Ljubljana. Retail Retail continues to outperform expectations, particularly in the retail park and single-tenant segments. Investors are gravitating towards assets that provide stable, long-term income, with grocery-anchored retail properties proving especially popular.
Although consumer spending has not fully returned to pre-2020 levels, the general retail recovery is sufficiently robust to sustain invest - ment interest. Moreover, retail formats that blend traditional shopping with lifestyle and entertainment offerings are gaining traction, reflecting a broader trend towards experiential retail. Vacancy rates remain low in prime loca - tions, and demand for refurbishments of older assets is growing, particularly those that can be upgraded to meet modern ESG standards. Online shopping habits established during the pandemic remain firmly in place, but the Slo - venian consumer still prefers physical retail for daily essentials and high-value purchases, which continues to support footfall in key urban and suburban centres. Since the retail market is well developed, there is not much room for large developments, save for some specific opportunities. One of them is a major ongoing development called Emonika in Ljubljana, which has picked up pace since Hungarian OTP took charge of the revitalisation. Another, also in Ljubljana, is the commercial part of the Sport Park Stožice project which was the first PPP of its type in Slovenia. However, after the core and shell was constructed and the pri - vate investor went bankrupt in 2012, the City of Ljubljana took control of the stadium and sport arena, while the commercial part – a retail centre of approximately 50,000 square metres of gross leasable area – remained unfinished and partially Slovenia has witnessed a shift towards ESG- compliant, large-format assets also in the logistics and industrial space. Proximity to the Adriatic coast and key European logistics cor - ridors adds to Slovenia’s appeal in this segment. Noteworthy projects include the 40,000 square exposed to the elements. Logistics and Industrial
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