Peloton Picks Ohio for $400M Campus

Peloton Output Park. Rendering courtesy of Peloton.

Peloton Interactive Inc., an exercise equipment company, has announced plans to build Peloton Output Park, its first U.S. manufacturing facility. The 200-acre development will be situated in Troy Township, Wood County, Ohio.

Peloton expects to invest about $400 million in the factory, which is slated for a 2023 completion. Construction work is expected to commence this summer.

Peloton Output Park will have more than 1 million square feet, comprising manufacturing, office, and amenities spaces. Employees will have access to a fitness center and lounge area and plans for a showroom are also included. The factory will make use of automation technology and renewable energy sources. The company will produce the Peloton Bike, Bike+ and Peloton Tread products at the new location.

The development will be situated “in the center of Troy Township”, according to Peloton’s announcement, which would place the facility approximately 16 miles south of Toledo, and about 70 miles from downtown Detroit. Nearby major thoroughfares include Interstates 90, 280 and State Road 23. Final site selection is undergoing final approvals from state and local officials.

Domestic manufacturing

Peloton announced plans to add more than 2,000 new jobs in Wood County, ranging from executive, managerial and manufacturing to entry-level positions. According to the U.S. Bureau of Labor Statistics, Ohio reached an unemployment rate of 4.7 percent as of April. Year-over-year, the value dropped by 11.7 percent, but remains below the national average of 6.1 percent.

In April, Peloton closed on the acquisition of Precor, a global commercial fitness equipment provider, in a $420 million deal. Peloton gained domestic manufacturing capabilities with the acquisition, through Precor’s facilities in Whitsett, N.C., and in Woodinville, Wash. Peloton otherwise outsources its manufacturing in Taiwan.

Last year, the company expanded its office footprint as well. According to CommercialEdge, the company entered into a leasing agreement in February last year, taking 261,000 square feet at Hudson Commons—441 9th Ave. in Manhattan—where it intends to move its new corporate headquarters. The move is planned for the second quarter this year. In December 2020, Peloton also leased more than 100,000 square feet at Legacy Central in Plano, Texas, where it operates a support and sales center.