Of course, there is a trend to people choosing to relocate to cheaper areas once the requirement to live near a (n expensive) city office is lifted. As such, this would often provide ample space for a WFH office.
I do about 95% of my work on my recliner with a laptop and a lap desk. No additional living space required. Occasionally I'll go in the computer room with the dual monitors when I feel I need them for something, but that's certainly not required.
* More office space required * Need to pay workers to be within reasonable distance of the office
There are penalties to WFH as well:
* Additional living space required for WFH