We downsized almost 5 years ago and are now in a 2 bed room condo. The second bedroom is for sewing and guests. We decided to get a murphy bed with cabinets (for stash) and bookcases on either side. So one wall has all that storage plus a bed for guests. When there are no guests, the closed bed looks like a paneled door. There is a fold down table on this door which serves as my cutting table. There's a good size closet, packed with more of my stash. My sewing cabinet sits either in the corner, or pulled out and used in front of the window. It has worked out very well. Good luck with your transition.