The Barbell Strategy: A Deeper Dive into the Disappearing Middle

04/09/2025

Show Notes

This week onThe Commercial Property Investor Podcast, we’re pulling back the curtain on a powerful economic force that’s reshaping nearly every industry – “The Barbell Effect”.

Jerry will be diving into this strategic concept, explaining how the market is being squeezed from both ends, leaving businesses in the middle vulnerable. Using well-known examples from airlines and coffee shops (https://www.bbc.co.uk/news/articles/c3dpjvy5em1o ) to supermarkets and hotels, he illustrates how companies are succeeding by choosing one of two clear paths:

  • The Tech-Enabled, Low-Cost Model: Think of businesses that win on efficiency, automation, and price.

  • The Hosted, High-End Model: These are companies that thrive on a premium, curated, and human-centric experience.

Jerry shares firsthand how he’s seen this play out in his own businesses and provides actionable takeaways for you. He’ll explain how understanding the barbell effect can help you vet potential tenants and make smarter, more strategic decisions to ensure your properties are aligned with long-term winners, not vulnerable middle-ground businesses.

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