When I worked - so many years ago! - most people were in the office. I used to change employer every three or so years, as I'd get bored and want new pastures/challenges.
It's interesting what being said about team cohesion. In the offices I worked in, sometimes one was positioned physically with people at the ssame level, so one team spread out over a number of offices (usually same building); sometimes a team was together - some people were jealous of those who had their own office but those guys were the top of the team).
Hot desking (never done it) sounds absolutely ghastly and not really appropriate unless you're a consultant coming in to do one job which will only take a day. I think any project which would take a person, be they secretary, typist, consultant in architecture or whatever, more time than that, will need theeir own space in which to work.
I can't say I noticed much difference in the team cohesion however they were physically organised, and I do know that the happier people are in their work, the more productive they are, and that includes all sorts of things like travel, finance, atmosphere, surroundings, people, tools and so on. So wfh seems like a good idea from that pov if that's what people prefer.
There's also the fact that if an organisation needs less office space due to staff wfh, then they'll save something in rent and utilities. The vacated buildings could be office space for another organisation or be repurposed into housing.
One place I worked in central London, the break room would have made a FANTASIC bedsit! There are many buildings in London which were originally people's homes and could be made so again.