I recall a Computer-Supported Cooperative Work paper (possibly this one? https://dl.acm.org/doi/10.1145/358916.359005) that identified different levels of collaboration including working together in the same room ("radically colocated" in CSCW jargon), working near others on the same floor, working on different floors or parts of the building, and working remotely or from different offices. They claimed that radical colocation was significantly more productive compared to the others, and collaborating across different floors was no better than being in different parts of the world.

Based on my experience since then I am less skeptical about those claims than when I first read the paper. I've been on skunkworks projects where a half-dozen people worked out of the same conference room for a couple months, offices where my teammates' desks were clustered together around a meeting space, open-plan offices with my team spread across the building, and working remote during Covid.

For well-established projects any of them were fine. But for new projects I felt like we gained a tremendous advantage by being in the same room. Maybe that won't always be true, but I wouldn't be surprised if it still holds today.