Both (Office & Teams) work well. Teams works with Rosetta and Office is native for apple silicon.
BUT there are some important plug-ins (like think-cell) that don´t work with the apple m1 chip yet and have to be ported to work correctly...
Excel, word, powerpoint and outlook are native and work great for me.
Teams is through rosetta and works great but eats RAM
OneDrive for business is through rosetta and work but is as much crap as it was on my intel mac (sometimes it suddenly starts to swell in RAM, max ram usage it has wanted before I killed and restarted it was around 16 GB. Had this issue both on intel mac and M1).