I think the biggest benefit is sitting together with your teammates. At JotForm, (most of) our teams have their own rooms with doors that can close. They can h

I think the biggest benefit is sitting together with your teammates. At JotForm, (most of) our teams have their own rooms with doors that can close. They can have lively "high bandwidth" discussion in front of a white board. People glance what is on their teammates' screens. Making comments about what they are doing and coming up with new ideas. They go to lunch together. Once a week, team lunch out is paid by the company. Informal talks turn into amazing ideas. Sitting together as a team is very motivational. You see excitement in other person's eyes and that in turn excites you. We also do a lot of co-piloting. Working on hard tasks or tasks that requires knowledge of two people can be done much more quickly when you sit together. We do have many remote developers but they all work individually on individual projects. It works really well if you work by yourself and if you have a backlog of tasks to do. In such cases, working alone remotely is perfect.