I've seen dozens of these discussions over the years, and it never ceases to amaze me when I see that the tax angle is being left out. At a prior company, the CFO flat-out told me that tax concerns were the driving factor. To put it simply, in many places the "open" space is subject to lower real estate taxes, and depreciation on the partitions etc. within that space can lower tax bills even further (out of all proportion to their actual cost). It's totally FUBAR, like most tax-related stuff, but it looks good on a balance sheet. When the benefits are in black and white but the drawbacks are nebulous - even if they're practically certain to be greater - it's pretty predictable which way execs and investors will go.