How expensive is it really? Maybe $15k to setup some walls? Let's sAy $30k as you will lose about 1/3rd the floor space.
That's a one time cost. Amortize that out over a 5 year office lease and it is peanuts compared to the productivity gains and lower turnover.
Also once you go with a private or semi private office you won't want to go back. Any employee from there interviewing at places with open offices will probably think how much they will hate it there.
I know the occasional person will pop up with the "I love hearing other people jibber jabber throughout the day!" But 9 out of 10 people I talk with would rather not.