As long as people are accountable, productive and valuable to your organization in most instances it shouldn’t matter where they work from. Don’t dismiss telecommuting as soon as you hear it mentioned, but rather do your diligence and consider it within your environment. It can go a long way in boosting morale, productivity and contributions (not to mention less people to “fight” for a parking spot 😉 ) If telecommuting is feasible (and desired by employees) within your environment it may be worth a shot.
In the end, if it doesn’t work out, you can always pull that privilege. What do you have to lose?