Does office space affect software development efficiency?

Steve McConnell identified "Noisy, crowded offices" as a "classic mistake" in software development, in his book Rapid Development. This finding has been substantiated by the results of multiple surveys. However, nothing much seems to be done about it.

A recent CNN report reveals that the average (American) office space has been shrinking over the past 20 years.
In 1994, the average office worker had 90 square feet of office space, but the area had been whittled down to 75 square feet in 2010, according to the International Facility Management Association, a professional network for the facility management industry.
Chart from the article in CNN. Click to enlarge
An interesting tidbit from that article -
For two years in a row, Fortune magazine has named SAS, a business intelligence software company in North Carolina, the No. 1 place to work. Company officials say they give almost all their employees private offices, which they say contributes to their success.

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