The new office features open workspaces for collaboration, a state-of-the-art computer operations center and a variety of conference and meeting rooms.In a prepared statement company president Kenneth Weller says the move will dramatically reduce Good Guys' annual real estate costs and offer its East Bay workers a shorter commute.

While terms of the lease were not disclosed, company officials anticipate the move will reduce its real estate costs by more than 50%. Rents in the area typically start at $2 per sf to $2.25 per sf.

Company officials hope the move will help the retailer pull out of the red after losing money for five straight years. In 2000, the firm lost $1.3 million. In the past 18 months, Good Guys has slashed 120 jobs and shifted its core strategy from competing with giant retailers Circuit City and Best Buy to offering higher-end electronics. In November, the company downsized its corporate workforce from 250 to 140 and gave up two of its five floors in its Brisbane office.