I just finished reading this article in The Atlantic about working from home. It's specifically a case study about IBM and the "results". 

I had many types of work experiences at IBM; I worked in an office with an office mate, I had an office all to myself, I was in an open landscape environment in cubicles and I worked from home.  Based on my experiences I can say there are good and bad aspects of both working in the office and working from home.

Working in an office includes some team synergy if the team is co-located.  At IBM your team could be scattered around the world.  Working in the office comes with a commute and requires a wardrobe budget.

Working from home doesn't require the commute or wardrobe but you do end up working more hours. It is harder to disconnect from work and just be home. You also lose some of the team synergy but that's only compared to a co-located team. Working from home also provides flexibility when dealing with global teams.  6am or 9pm conference calls are going to happen whether you are in the office or not.  It is more isolating to work from home, you miss out on the social aspects of work. Things like seeing colleagues in the cafeteria or participating in on-site events definitely add value.  But you could drive in to work for those events also.

IBM, to date, never took advantage of video conferencing... it was telephone conferences and group chats. Video conferencing may have brought some value but most were intimidated by the thought of that sort of intrusion into their home office, probably with good reason.

As a project manager the absolute best scenario for success would be to have a co-located team. I have managed both ways and the team building is much better in person. It's also easier to waste time in meetings or socializing.  Something else about meetings - it's easier to keep people's attention when in a room together than when they are all at home.  It's tempting to multitask when working from home and most miss large parts of what's happening in the meeting, only waiting for their time to share or key words that will perk them back into the central conversation.

The reality for IBMers is that the majority work at the office then go home and connect from there. I knew some who wouldn't do that and they were no less respected for doing so.

The best world would be to have a mix because there are times when you really don't have to be in an office to get the work done but being there could facilitate team building and synergy.