It's a valid response because you seem to be denying any factors other than money, which is ridiculous.
I've mentioned lease terms as one major counter-example. It is not enough to lease "larger than you need right now," but given 12-month standard lease terms, you must lease "larger than you will need one year from now," which isn't a factor of money alone.
We had that problem at a different company (lease start actually, being a little far out) and opened a temporary office for 2 months.
There is literally no situation where any moderately competent company is forced to cram people closer than normal except to save money. Even "normal" is defined by money.
Heck, even an incompetent company can pay a competent company figure it out for them.
Office/Commercial space is usually leased on much longer intervals than 1 year. It has to be or it would make no sense to complete the necessary renovations.
I've mentioned lease terms as one major counter-example. It is not enough to lease "larger than you need right now," but given 12-month standard lease terms, you must lease "larger than you will need one year from now," which isn't a factor of money alone.