US (HAWAII). DFS Hawaii is downsizing and vacating one-quarter of its warehouse space following the recent termination of the operator’s duty free concession contract.
According to local reports, DFS is slimming down for a new concession term by giving up approximately 40,000 sq ft (3,717 sq m) of warehouse space it has leased for 15 years at the Airport Industrial Park. The move will cut about 25% from the existing 160,000 sq ft (14,870sq m) of warehouse space on Oahu Island and will save DFS nearly $500,000 in rent annually, according to Sofos Realty, which is handling the next lease for the landlord.
The empty space is not officially on the market, but 12 interested parties are said to have already contacted Sofos.
As revealed in The Moodie Report last month (The Moodie Report, 6 August 2003), DFS withdrew its duty free concession contract in exchange for back-rent relief from Hawaii state. That concession began on 1 June 2001 and was scheduled to expire on 31 May 2006.
The state is seeking new bids on the contract, which includes on and off airport operations. DFS is required to bid for the lease – for a term that is expected to be from 1 October 2003 through 31 May 2006 – as part of its settlement.
