do you have space between the toilet and shower for a tall skinny storage cabinet? that and hang a large pic over the toilet and that should cover most of the space.

IMHO Leave it open... many older bathrooms had drop ceilings over the bath/shower, and it gives a very closed in feel- a bit claustrophobic, to me. When we did our 2 baths, we actually ripped out the ceiling and brought it up just to have more open space! The feel is wonderful. If you look at many photos in magazines, you will find one thing in common (regarding any room)- the ceilings are high! While this is not practical from a heating standpoint (it rises), and that's why in the south, houses have high ceilings, in the colder climates, lower ceilings, it does add a lot of beauty to a room.

https://elsalvador.desertcart.com/products/175029729 Scroll to last pic. I saw it somewhere else originally. zoinart Vertical Abstract Paintings Floral Wall Art 48x24 inch 100% Hand Painted White Flower in Brown Vase 3D Oil Painting on Canvas Wall Art for Hallway Wall Decor Ready to Hang

@Jaime Lynn - attempting to guide you with limited knowledge of your space. First Question - is your 36” stairwell measured against the insulation batt or to the foundation wall? Next Question - are you planning to engage a contractor to finish the space or DIY the work? Our stairwell measures 36” but the door is 30”. Everything in our basement passed thru that doorway. At times I have removed the door itself and the bannister for easier maneuvering. Insulation consumes space. Typical fiberglass between studs is R13 and 3.5” thick. High density XPS is R4.7 per inch. XPS is better for below grade use because it is impervious to condensation, can be glued onto concrete and drywall can be glued onto the XPS. So 2” of XPS plus drywall would be 2.5” vs 4” of a typical stud wall. Hope that makes sense. Why not add stairs between the decks if you have basement access? Our garage is 22 feet deep with 10 foot ceiling. The top shelving is 6’ above the floor for clearance to walk under. Our basement was DIY finished many years ago. Develop a plan and work the plan - same applies even if hiring a professional. We actually placed masking tape on the floor to ”live” the space before building. Here’s a video of the finished space. No bedroom and the office was initially concepted to be a bathroom. https://youtu.be/3FqMEqaf0-I Good luck - hope I’ve helped.