Peloton Leases 75,000 Square Feet in Middleborough
Posted By: Boston City Properties
With business booming more than ever in the wake of the pandemic, New York-based Peloton Interactive recently announced that it would lease 75,000 square feet of industrial warehouse space in Middleborough. Demand for the fitness company’s high-tech treadmills and stationary bicycles, which cost between $1,900 and more than $4,300, has spiked since the onset of the coronavirus pandemic, and Peloton has struggled to get products to customers quickly. The company plans to use the last-mile distribution warehouse space to deliver its products more quickly and efficiently to customers throughout Greater Boston.
Earlier in March, Peloton announced that it was making a $100 million investment to shorten its delivery windows. The acquisition of the space in Middleborough should play a significant role in the move. Situated on 22.7 acres at 61 Leona Drive, the property has 150,000 combined square feet. It is permitted to be expanded by another 50,000 square feet, so there’s room to grow. In leasing 75,000 square feet of space in the building, Peloton has scooped up the last remaining leasable space held by the landlord, National Development. The company’s portfolio is now fully leased.
The new space acquired by Peloton is versatile and flexible. Acquired by National Development in 2018, the warehouse property includes high-bay ceilings, 24 tailhead docks and 50-foot by 50-foot bay spacing. The property also features a showroom, which should come in handy for Peloton. Although specific information hasn’t been released yet, the company will likely use the showroom to showcase its high-tech stationary bicycles and treadmills. The equipment includes a screen that provides virtual training not only for running and biking but for exercises like yoga and Pilates too.
When the pandemic struck early in the spring of 2020 and lockdown orders went into effect across the country, gyms and fitness centers shuttered their doors. In turn, demand for at-home exercise equipment surged. Peloton was already enjoying exceptional marketing success, but the onset of the pandemic made demand soar higher still. Despite the high cost of the equipment, people around the country were placing orders en masse, leading to excessively long lead times. By securing last-mile distribution space in Boston and elsewhere, Peloton should be able to reduce its delivery windows, ensuring that its products are delivered quickly throughout the northeast. Given that the warehouse can be expanded by another 50,000 square feet, the fitness giant should stay put for some time.