Which is the greater priority, office comfort or guest comfort? I'd be tempted to either use a futon/pull-out couch or put the bed against the window wall but parallel to it, thus leaving breathing space for using it the rest of the time. You can always slide the bed over when guests actually use the space.

We have a guest bedroom that is the same size, and you're right, this is a challenge. The real challenge comes that you're trying to do too many things in a small space. It's not impossible, but it's a challenge.

The way we tackled this, is we have a folding desk (that I made from an Ikea desk top and folding legs) that can go in the closet when we have guests over. Then we can use our inflatable queen-size mattress for guests or kids.

If you want to have a permanent bed as a fixture in here, I strongly recommend looking into a murphy bed. You could purchase one or buy a kit to build your own. You could also buy a folding bed frame and put the bed away in the closet.

Look at some tiny house ideas (even though your house isn't tiny, you are restricted on space, and they often have creative options), and modular furniture that can be used more than one way, like (but not necessarily) futon beds.

I hope this is helpful. Good luck!

Here is another possible setup. We could have the head of the bed facing away from the street in this scenario but there wouldn't be room for a nightstand, is that weird?

Wow Murphy beds are really awesome but definitely more than we wanted to spend. A futon could work but every futon I've ever slept on has been uncomfortable as hell. Does anyone have any recommendations for a futon that's actually comfy?

Seems like you have plenty of room for a full size bed...and your guests will appreciate a proper bed.

Futons are for if you want your guests to never ever come back.

Sleeper sofa? One of these couches that turns into a bed?

With regard to the futon - you could always put an air mattress on top of the futon matress to make it more comfortable. Store the air mattress in the closet when not in use.

Ah those sketches are amazing!! Yes there is room but as I suspected not really any way to avoid the persons head being near the window. We can definitely get a good pair of blackout curtains to minimize the light and noise. I agree that as a guest I would definitely appreciate a bed if at all possible.

Futons are not very squishy by nature. Do you have closet space to store a foam or latex mattress topper? It might make the futon a bit more livable.

My thoughts were the same as Lydia's: an air bed that you only bring out when you need it, or a Murphy bed. A Murphy bed would be an investment, but if you are going to use the room as an office regularly (say, if someone were working from home) it would make the space a lot more pleasant.

How wide is the closet door?

I like the top left sketch. When you do have guests, clear off the desk and use it as a nightstand. Your guests will appreciate a place to put clothes (on the desk). Be sure you have a table lamp and a clock.

I've generally found futons to be more comfortable than sofa beds. I've slept on some ridiculously uncomfortable sofa beds.

Instead of a Murphy bed, you could do a Murphy DESK aka wall desk. Bed and chest (or nightstand) should go on the wall where desk is presently located. Murphy desk would go on opposite wall. It means you can't have papers lying around as table top would have to be pulled up when expecting guests.

I thought you just wanted to avoid the head of the bed being against the window wall. If you can't avoid the noise, consider the first arrangement below. Also, my initial dimensions were slightly off.

Thanks again! It isn't a huge concern as things are usually pretty quiet at night but there is a big truck or motorcycle every once in a while. That last sketch is one I hadn't thought of before, definitely seems to be the only way to get a little distance from the window.

Yes we do have guests fairly often, probably once a month at least and right now they either sleep on the couch or an air mattress in the living room but being able to provide them a real bed would be great. It's mostly couples, hence the desire for a full bed as opposed to twin.

Check out aktillery's great office/guest room:

http://ths.gardenweb.com/discussions/3560383/office-turned-guest-room?n=29

http://m.ikea.com/us/en/catalog/products/art/30349329/

Hemnes Daybed. Pulls out to make double bed.

Maybe you could provide a sound machine to help mitigate the street noise. This would free you up to put the bed and desk where they would fit the best.