The urban retail landscape has been in serious flux for years now as technology, new consumer shopping behaviors, rising rents and e-commerce collide to “oust” traditional brick-and-mortar retail spaces (or so we’re led to believe). In Boston, Newbury Street has been at the epicenter of these conversations in recent months, and frankly, for years.

The historically high-end shopping destination has been under a microscope as the reporting on inflated rents and high turnover have led to an increase in vacancies up and down the street. Despite concerns that Newbury Street’s ride at the top is over, the future of Newbury is not in question, and here’s why:

Brick-and-Mortar is Alive and Well

The retail apocalypse many fear is not at fault for current vacancies or turnover we’re seeing on Newbury Street. Retailers of a bygone era, who have failed to evolve with their customers, are being replaced by smarter, omni-channel focused brands. In fact, it has been the transformation and success of the enclosed malls in Boston that have impacted the momentum on Newbury. Just down the street, we’ve seen incredible things take place at the Prudential Center and Copley Place, thanks to Boston Properties and Simon Property Group.

Newbury Street is competing against a neighbor that boasts an urban mixed-use shopping center anchored by Barney’s, Saks and Neiman Marcus, several million square feet of office, residential towers, a convention center, the largest concentration of hotel rooms in Boston, and an enormous parking garage, not to mention perfect weather 365 days a year. Given that leasing at both of those centers is now substantially complete, we are likely to see things pick up again on Newbury Street.

What Goes Up Must Come Down

The high rents that landlords were able to achieve on Newbury Street four to five years ago have come back down and are at levels that allow both the building owners and the retailers to make a profit. The correction in the market seems to have stabilized in the low to mid $100’s per square foot, as opposed to the high $100’s a few years ago. Every four to five years there’s increased concern over vacancies. But what is not typically considered is that while there may be a sign in the window suggesting a vacancy, there are tenants actively negotiating leases on the spaces. There are over 400 storefronts on Newbury Street, and the fact that there are as few vacancies as there are is remarkable when you consider the total number of active retailers in the country right now. The activity on the street speaks volumes about the desirability of Boston and Newbury Street.

Leading The Way In New Leasing Models

The high turnover many note as the demise of Newbury Street is not something we should see as a negative. As new retailers seek to test or break into the market and determine the viability for long-term brick-and-mortar success, short-term agreements of six- to 12-month are being signed before committing to a more long-term lease. New retailers to the street are able to test if the concept is going to be successful and then commit to a financial model on build-out and lease obligations that are appropriate with the sales they are able to generate.

We’re seeing many startup retail concepts such as Tie Bar, AUrate, State & Liberty, Alps & Meters, Daniel Wellington and Credo using this leasing model in pre-existing, popular retail spaces along Newbury Street. Warby Parker and Bonobos both opened their first stores in the U.S. on Newbury Street as short-term test models, and today Bonobos has 48 stores nationwide and Warby Parker has 63.

Newbury Street is not only engaging in new leasing models, but also bringing in a variety of tenants. The street has also evolved to be so much more than just the destination for high-end retailers it is often perceived as. The availability of great space at reasonable rents is giving consumers the ability to access new and creative brands that would have been priced out of the market just a few short years ago. There is truly something for every price point on the street – both for consumers and retailers.

While conversations around the demise of brick-and-mortar and the spike of vacancy rates make their way through the news cycle, Newbury Street continues to evolve and will remain one of the country’s most iconic and busy shopping districts.

Matt Curtin is a senior vice president and partner at CBRE/New England.