One thing about having 2 rooms...you'll get exercise walking back and forth. My sewing studio is in the basement (which just flooded due to sump pump failure). Don't put fabric or machines on the floor. I think you will have to play around with what works for you. I have a beautiful setup, but find that I have moved some things around because they didn't work the way I had originally planned. I would use the smaller room for storage and the larger room for your work room.