work from home or rent an office?
noodle: you pretty much nail it.  office time is typically more productive.  however, if you're paying $1k/mo for 3 people, i'd think you're overpaying.  try and find a good coworking space.  (i'm been giving thought to setting up a space myself).  a good coworking space should theoretically have the benefits of a dedicated office space, but cheaper.