Colliers Transacts Grade A Warehouse Space For Metro Brands Limited

Leading diversified professional services and investment management company, Colliers India, recently transacted a built-to-suit (BTS) Grade A warehouse space in Mumbai for Metro Brands Limited (MBL), one of India’s largest footwear and accessory specialty retailers. Recognized as one of the "Iconic Brands of India , MBL operates more than 800 stores across over 180 Indian cities.

With the changing times, warehousing solutions have also evolved tremendously, especially in the last decade. Major contributors of this change are changing customer dynamics, advancement in technology, demographic changes in demand and supply, and proliferation of e-commerce. MBL recognized the need to operate from a Grade-A space and appointed Colliers to identify well-equipped, modern spaces that offered increased height, higher floor load capacity, advanced flooring systems, automated material handling equipment, robust fire safety protocols, and a clean environment.

On conducting a market analysis and gaining a clear understanding of MBL’s vision and its present and future business needs, Colliers experts proposed BTS space instead of a conventional one, given the cost-effectiveness and flexibility offered. And Bhiwandi’s largest developer, RK Builders Group, who have successfully delivered over 7.5 million sq. ft. and presently have 2.5+ million sq. ft. of Grade-A warehousing under construction, were able to design and deliver this project for MBL.

The fully compounded property has a dedicated premise for MBL and boasts a 15 meters clear height structure that will facilitate automation and the integration of cutting-edge technology. Committed to scaling its India operations and in alignment with its expansion plans, the brand has confirmed a 5-year lock-in period; this is the largest space take-up by an Indian footwear company.

According to the latest Q4 2023 Industrial Snapshot released by Colliers, leasing activity in the industrial and warehousing segment has been steadily increasing, with the sector recording 25 million sq. ft. of gross absorption in 2023, a 2% YoY jump. For FY 2023, the most active micro market was Mumbai’s Bhiwandi which has emerged as one of the most preferred warehousing markets, given its strategic location, stable rentals, and proximity to major city hubs in Thane and Mumbai.

“The retail industry is bouncing back as fresh demand takes over the market, given the upgrade in per capita income and a strong appetite for higher lifestyle. We were able to carefully understand the business expansion plans of the client and devise a real estate strategy that would fetch long-term gains. The warehousing sector is advancing rapidly, with the adoption of new technologies, infrastructure upgrades, and smoother processes.

I am proud of the team for identifying a series of conveniently located, well-equipped spaces and finally assisting the firm in negotiating and transacting the selected space. We look forward to being closely associated with Metro Brands and providing our services for their future business needs.” says Vijaya Ganesh, Managing Director, Industrial & Logistics Services, Colliers India.

Kaushal Parekh, Chief Financial Officer, Metro Brands Limited said, “In line with our vision to grow aggressively, we continuously strive to enhance our operational capabilities and provide world- class services to our customers. Colliers' expertise in real estate has been instrumental in securing a tailored built-to-suit warehouse space for us. This strategic move reinforces our commitment to quality and efficiency, allowing us to meet the growing demands of our business."

Within the MBL family, an array of brands, including iconic Indian labels like Metro Shoes, Mochi, Walkway and popular international choices like Crocs, and FitFlop, have prospered. The company also recently announced a strategic partnership with US-based footwear giant Foot Locker, and with Fila already on board, MBL is poised to elevate the sportswear culture in India.