Closets with built-in drawers and shelves above them, next to a full length hanging space would be useful in a small room. No point wasting space on walk-in closets for kids. Simple is better. Future buyers would probably have kids, too. Both photos below show drawers and hanging space.

Modern Style · More Info

Kid's Spaces · More Info

For resale a room is not considered a bedroom if it does not have a closet. That being said you have a long term plan for your home and have worked out a personal solution.

Typically in a home of your age the closet was a tiny thing, barely large enough to store a few articles. Armoires were used for the bulk of clothing.

You may want to consider a less permanent division to the rooms which will allow each child privacy and reduce noise yet allow you to open the room up to give them more space.

In your FP the upper left bedroom could have a closet cantilevered into the garage.

Thanks so much for all of the responses. I am leaning towards something like the below. I am looking to keep the closets to just about 20-24" deep so as to not eat up too much floor space. In a moment I'll post a rough sketch of how to divide the kids rooms with closets between them. Will try and keep the closets shallow so as to maximize the already limited floor space. As it stands I think we can net two rooms that are about 10' x 9.5".

I am leaning towards sliding doors for the closets, but could do swinging or folding - any sense of which of those options will take up the least amount of space?

Anyone have any other thoughts or suggestions on this approach? The windows in the bottom room are already there and we dont plan to move them. The top room window will be new. Thanks again.

Here is my rough sketch referred to above:

I'm not seeing the sketch.

Do with closets. They don't need to be large. Could build one in each of two corners leaving space for chest of drawers between under the window, maybe.

Just a thought. How large an office do you need? Could you put one child's bedroom in the proposed office space, and make a small office on the other side of the hall? The second child's bedroom could be enlarged with room for a closet, something like that in my very crude sketch.

I noted you are changing a exterior wall for the bedrooms ( expensive) , plus a sizable expense for relocating the bath (to a smaller ) footprint. You want to expand the closet area in the master and use one area as a "office". No laundry rm. identified so I will assume it is in the Garage? The master, Living space, and office indicate sliders ? - to a patio ? You show minor wall and window changes in the kitchen area.

If you were attempting to add a bed rm you may wish to reduce cost by eliminating expansion on the west side exterior or moving the bath. Remodeling the bath in its existing location would be more cost effective. adding a "smaller" office and bed rm to the area east of the hallway may offer a smaller bed and smaller office with modification to the living rm and hallway closets. Thus minimizing construction to the interior walls without disturbing the plumbing in a major way.You will sacrifice a "walk in closet" in the Master but would be able to maximize closet space with a linear version. I do not have sufficient info to address the kitchen area. I assume removing the Dining area walls are a simple solution. You may want to consider an island for the kitchen.