not just density, but "easier" for the decision makers. Its easier to rent a big open room than to figure out an office plan and seating plan and construction schedule. Its easier to move desks around like musical chairs than to have to mutate rooms and halls.
People will almost always take the near-term cheaper and easier option, even when its worse and more expensive in the long run.
Incidentally, this was the one thing I liked about we-work. Room sizes were genuinely appropriate for 2 - 5 people (ofc sold as 3 - 10).
CEO at my company did that and seemed to actually enjoy it, but other executives basically forced him to get an office because he was too often discussing confidential information out in the open.
People will almost always take the near-term cheaper and easier option, even when its worse and more expensive in the long run.
Incidentally, this was the one thing I liked about we-work. Room sizes were genuinely appropriate for 2 - 5 people (ofc sold as 3 - 10).