IKEA Eshtaol is a store spread over 17,000 square meters, in addition to logistics and office space that is above and beyond the 17ksm.

The IKEA Eshtaol disputed area, occupied territory, is on 8000 square meters. While initially IKEA responded to the court order forcing them to close part of the store by saying that they would close 8000sm of office space and keep the store open (while they work out the zoning and permit issues), IKEA is now threatening to shut the store completely if forced to shut 8000sm. This would also mean sending about 300 employees back to the unemployment lines.

IKEA lawyers offered to close 3000sm of space instead of 8000, but State lawyers are rejecting the proposal for now saying this is not enough of a threat that should force IKEA to shut the store, and brought examples from IKEA stores around the world that are a similar size.

The State is willing to compromise on the amount of space to be closed it seems, as long as the amount and location is significant enough that it shows the State is in charge and IKEA cannot just do whatever it wants and it is a deterrent to other people who might otherwise try the same. The State will not be able to enforce any building violations anywhere else if IKEA is allowed to break the rules flagrantly with no significant punishment.
source: Shemesh