Virtual office or office space (not the movie)?

Earlier today George and I were discussing our growth plan. Between running our sites and managing clients, Pure Adapt (all of three weeks old) is maxing out our time. We were discussing when/how we're going to go about hiring employees and interns, and we were discussing whether or not we'll ever need office space.

Currently we all work from home, and communicate through a combination of Skype, email, and iPrioritize...and it works well. When necessary, we meet at someone's house or go to a Starbucks-type coffee house. With employees, we could do the same (probably more of the coffee houses and less of our places).

Honestly, I don't see the need for office space for a long, long time....if ever. Now I realize that it takes a special type of person to work independently, and we'll have to hire accordingly, but I think it can work. I also think it will be perceived as a HUGE benefit for the independent worker, and might be a competitive advantage when trying to lure some talent away from a larger company.

No sooner than a few hours later did I stumble upon an interview with Jason Fried, the founder of 37 Signals (a "competitor" of iPrioritize that I'm sure doesn't even know iPrioritize exists). I admire a lot about 37 Signals, particularly how they've kept the company completely virtual with 6 employees despite making millions. The main topic of the article is the virtual workplace, and why Fried PREFERS it to a regular workplace. It's not for everyone, but this article helped make me validate my thoughts and think that it's definitely something that will work for Pure Adapt.

Your thoughts?