office setting. If you're a top law student and could go to any law firm in the world... it would be most likely that you would select a company where senior level lawyers are in the office regularly. You'll want to network... you'll want to be mentored... you'll want the best training available... and those things will be found at a firm where their best lawyers are working in the office....
I can see working a day a week or so from home becoming more normal (especially in the summer)... but most will spend the majority of their time working from the office.