Yeah, I like that. I think having an office with flexibility to be there anywhere from occasionally to every day is a good thing.
There are also people who don't work well remotely, especially if the salaries don't increase enough to rent a big enough apartment with decent lighting, or if the employee has children who constantly distract them, among others.
Like, look at London. Mega house prices in the city, but they peter out pretty quickly once you cross the M25 and you start hitting semi-rural areas.