Instead, Abaxis last spring began looking for greener - andcheaper - pastures. The company eventually chose to build a90,000-sf facility in Union City. It is investing $6 million in thebuilding, which would have paid for less than three years of rentunder the new rates in Sunnyvale.

It will retain the building in Sunnyvale - unmodified - but mostemployees have relocated to the company's new Union City quartersat Union City Boulevard and Whipple Road, Severson says. Members ofthe company's administrative staff, marketing and salesdepartments, the customer service and technical support teams, andresearch and development employees all moved into the new quartersthis week. The firm's operations staff will move in by the middleof next month.

The move cost the company more than a quarter of its employees,though. "Out of 130 people, we lost about 40 who didn't want tocommute," he says. "Everyone else is adjusting."