RTO but no office space?

I'm not a state worker myself but my boyfriend is. His department downsized to a smaller office space at some point during the pandemic, and they are currently on a 2 day in office hybrid model where some people are Mon/Tues in office and others are Thurs/Fri (I think). He made the point that the office isn't big enough to accommodate everyone coming back. Are other groups having this issue? Are they going to be forced to move offices again? Isn't that just going to lead to more government expense since I assume bigger office means bigger lease??

I'm just floored on his behalf and for all of you here, it's boggling me what an unnecessary and damaging decision this is. I'm simply baffled.