Yep, I feel your pain. Downsized from a full basement sewing room to a small bedroom sewing room. My kitchen is bigger than my sewing room and I HATE TO COOK! Vertical is the way to go, of course, closets, under beds, dresser drawers, are good storage areas. But I still have to downsize my stash, no room to move in my new cubicle!
Best of luck with the renovation! Get what you can!