Developers are scaling back a project planned near D.C.’s historic Eastern Market after key tenants backed out, a move met by praise from residents who worried the project was too big for the neighborhood.

The Stanton-EastBanc team is cutting out roughly 13 percent of it project, or 85,000 square feet, after two nonprofit companies backed out of their planned relocation to the development. As a result, developers are removing parking spaces, adding more residential units and breaking up the project’s main building into three smaller ones.