I could do office tasks and admin and see the odd student in a shared space, but absolutely not do thinking and writing with 64 people around me. I just couldn't, I need peace and quiet and take quite a long time to put pen to paper. It's not a hot-desking type of an activity!
That's not to say I have never written in a crazy environment, I wrote most of a book around small kids and used to go to the local playcentre and type among the screeching. But only for an hour or two at a time and only in utter desperation.
I found a shared office with two other people fine, because we used to chat for a couple of minutes, then crack on and work. But we didn't have students then.
I cannot imagine trying to write 'world-class research' above the noise of people counselling students or getting up and down holding meetings.
I agree with whoever said what they really mean is work doing research and writing from home in your own time (evenings and weekends) and is just a space saving money oriented exercise in which you have to work harder just to keep up what you were achieving beforehand.
As for collaboration with other academics, I find that takes a couple of hours once a week (or less) to plan what you are doing, not all day every day with students wandering about.
Horrific, hope my place doesn't hear about this!