Despite retailers' desire to grow in the region, activity has slowed with the lack of available space and rents that have become too high for many to swallow.

“While most of the drop was attributed to the lack of availability, many retailers are opening smaller-than-expected locations,” said Edie Weintraub, CEO of the retail and restaurant brokerage firm Terra Alma. Shrinking store footprints are helping retailers achieve cash flow sooner with new locations, Weintraub said. 

“They say orange is the new black,” she said. “Well, less space is the new black.”