Peloton has recently leased 75,000 square feet of warehouse space for last-mile deliveries in the greater Boston area. The facility in Middleborough, Massachusetts, will house Peloton Bikes and Treads. This lease will help shorten delivery times for customers in the area.
According to owner National Development, the warehouse space combines for a total of 150,000 square feet. The building is also permitted to expand by another 50,000 square feet. Peloton’s initial lease term is a little over five years. Andrew Gallinaro, a managing partner for the landlord said:
We are extremely enthusiastic about Peloton joining our industrial portfolio by taking our last remaining vacancy and the validation its tenancy provides for 61 Leona Drive as an exceptional last-mile location. The property is well-positioned to facilitate seamless distribution logistics given its attractive in-place infrastructure and immediate highway accessibility.
This move by Peloton is one of several the home fitness behemoth is implementing to decrease its delivery times. Last month, CEO John Foley announced a $100 million investment by Peloton to expedite global shipping processes. This past year, delays from supply chains overseas put a strain on Peloton delivery times. The COVID-19 pandemic also caused an influx of shipping containers to be held up at ports.
Additionally, Peloton is looking to expand to other global markets like Australia. Furthermore, it has hinted at plans to provide new fitness categories to its content library. With the warehouse space in Massachusetts, Peloton will be able to better serve Boston and its neighboring cities more quickly.
It would make sense to see more of these sorts of leases pop up around the US for Peloton, particularly as it works toward shortening product delivery delays.