Yes, when the whole team is working from a single location, there can be advantages. But that situation is uncommon. In fact, the only time I can recall being in that situation during the last 20 years is a short stint I had at a startup; about 10 people, from CEO to intern, in a single open office. And even then, they only _required_ in-office three times a week.

More common, teams are split over two or more cities/states/countries. I'm currently in Colorado. I'm never going to have a water cooler chat with my colleague in Budapest.