Image courtesy of CBT Architects

Developers are scaling back the initial phase of a 2.6 million-square-foot development near Sullivan Square to include less life science space, including the elimination of a previously proposed lab building at 100 Cambridge St.

RISE Together and Trax Development proposed nearly 1 million square feet of office, lab and multifamily development in the first phase of the Sullivan Square project at 10-40 Roland St.

The initial phase is proposed for 6.1 acres of the 13-acre site spanning multiple parcels along Roland and Cambridge Streets.

The development team notified Boston officials this week that they will drop a 246,000-square-foot life science building at 100 Cambridge St. from the first phase of the project.

Headwinds are forming for the region’s life science development picture after two years of torrid activity.

In a report released this week, brokerage Newmark said rising interest rates and inflation are making it more difficult for projects to obtain financing. As a result, at least 65 percent of the 40 million square feet of proposed and permitted lab developments could be curtailed, the report states.

“Tumult in the public markets and increasing layoffs and sublease availabilities throughout the region are weighing on market sentiment,” the report said.

The changes reduce life science development in the first phase of the Charlestown project by 252,500 square feet to 605,300 square feet, while adding 12 residential units. A planned 60-unit residential building at 116 Cambridge St. will be eliminated from the first phase, but replaced by a 72-unit multifamily building at 128-142 Cambridge St.

Developers did not cite specifics in the reasons for the changes. At a June forum sponsored by NAIOP Massachusetts, BPDA Director Arthur Jemison expressed concern about the agency’s capacity to review multi-phased projects and urged developers to concentrate on the most imminent plans.