While you are correct there is an advantage for having people at the office. When you hire new people they do not integrate properly when they work from home. And I've noticed some push for returning to work from the office in several major tech companies. This makes me think that productivity is an issue. Even my current employer encourages coming to the office, is not mandatory but encouraged.

That being said, I hate cities. I was born and raised in a large city and I hate it. I moved out and I hate every time I have to go to the city.