The issue of whether an office is necessary in the 21st century has sparked a lot of debate and while many factors influence the decision, ultimately the best course of action is to get yourself an office. Now, here’s why…

In 2012, Bank of America changed its policy regarding working from home and required its employees to spend more time at the office. In 2013, a Yahoo! executive, Marissa Mayer, wrote an internal memo to the company. Within the memo was this sentence:

“Speed and quality are often sacrificed when we work from home. We need to be one Yahoo!, and that starts with physically being together.”

But these are industry giants. Does a startup company in the 21st century really need an office?

Prestige and trustworthiness definitely plays a role in the startup world. Nowadays, customers and clients get an impression of who you are as a company mostly through the Internet, but with the Internet comes boundless competition. Provided your web presence is the same as your competitor’s, why would someone choose your company if your competitor is in an executive suite on Madison Avenue?

Still, for the best reason, we go back to Yahoo! and Bank of America. It’s all about communication and interactions – and that doesn’t change whether you’re a small business or a giant. The New York Times reported that employees who work remotely have a more difficult time getting promoted. This may have to do with the fact that the interactions and happenstances you share with co-workers in an office are invaluable. Great ideas happen over lunch. If an office space is off the table, the next best thing to consider is a virtual office, which will allow you to build office-like relationships with your co-workers remotely.

Bottom line, don’t take the risk. Building a great business means building it right. Follow suit with the industry giants and get the team together in a space you’re proud of. You’ll be boosting collaboration, integration, and prestige.