With the advent of the internet, it's very possible to build location-independent businesses. It's fun reading about small software companies that are based in 3 different countries.<p>Is this model scalable? Also, it might be better for products that are smaller and niche. Building a AAA game, for example, might be almost impossible to do without an office.
As far as I know, Automattic (the company behind WordPress) doesn't have offices. At the very least, almost all of their workforce are remote workers.
Once you reach a certain size, it might make sense to have an office just because some people like working in offices. Not everyone wants to work from home.