In a small space with shared housing I would think the most versatile thing would be a sewing machine cabinet with the lift. That way you can roll it to where you want it and yet hide the machine when you want to. I have slept in my 'studio' but slept better when the machine was put away for the night.
If the weather, electrical capacity, and the air temp/quality is OK maybe the shed could be used for cutting on a larger surface.