Anything that makes it look more natural to connect it to the outdoor areas would be nice. I would sand and paint the walls white or a very subtle green. For flooring, you might connect it with whatever flooring you have in the adjacent space, or use hardwood. Have you decided how you want to use the space? You might wait on the flooring until you move in and figure that out.

Thanks so much for your suggestions! We're renovating the entire townhouse before we move in, so had hoped to do the flooring all in one shot. We're putting in hickory hardwood flooring throughout, which I don't think would work with the cedar (at least not in its current form), so had thought tile would be most logical. I think it's really going to end up as a reading nook, as it's too narrow to put any furniture wider than a chair in...

Somehow that looks more like knotty pine to me. If so, it whitewashes well.

Back to a deck or roll into interior space?

I'd continue your new flooring into the space so it's more connected, and either paint the walls white or remove the wood and drywall it.

You mentioned you will probably use this space as a reading nook because it’s too narrow for anything else. I agree that it is narrow, so I would use it as a greenhouse. It would be perfect for potted herbs. It seems to get plenty of light and has a tiled floor so you can easily clean it etc. My inner-chef would leave it as is and start planning my herb garden. 🌿

I would take the floor out and either do wood look tile or even a luxury vinyl wood look or a tile that looks like slate.

If you already got a splinter form the cedar - why keep it? I do agree that it looks a bit like Knotty pine to me. I would give it a sanding and stain it a little darker... make the space like you are sitting outside in the woods - rich, earthy tones... that's the way I would go

Whatever you do - Post pictures - it is a cool space!

Is this at the front entry, like they converted their front porch, or at the back, or...? Because a lot of these are almost too narrow to use for sitting, and you might get more out of using it for, say, a mudroom with a bench and some nice closed storage. Just guessing though without context.

It was originally a balcony off the master bedroom, which a past owner converted into a solarium. We definitely don't want to turn it back into a deck (we have a big back patio), and in Vancouver, enclosed space is definitely going to be more usable 8 months out of the year. Unfortunately, because it's technically "outdoor" space, drywall isn't an option (it's the exterior of the building under that wood). We were told it was cedar, which makes sense in Vancouver, though I'll look into whether it's actually something else. I appreciate all the suggestions so far! Keep them coming :)

I’d wait and see what you ‘need’. Maybe you end up converting it back to an outdoor space with screens.

In other words I’d say don’t throw any money at it yet and don’t pet the walls :)

I'd bring the outdoors in by creating a living wall of herbs and plants. Add potted plants, with one tall plant. Change the curtains to something with a landscape design(trees, forest). Put in two comfortable chairs with a table in between and enjoy your morning coffee....Best Wishes!

You have an outlet to set up a Kurig bar right there for morning coffee. Sounds right to me!

Its a nice idea. Too many plants could be too much moisture. I see an easel, baseboard heat, and wall light. Can you plant some berry bearing trees to attract birds? Or bird feeders. I'd wait a full year to see how hot or cold it becomes.

Thinking bring the flooring from the rest of the house out there, whitewash the cedar, set up that reading space with two comfortable chairs with slender ottomans. And an area to grow herbs and small plants. That ceiling looks like that drop panel stuff - is it possible to sheet rock just that, or to at least have a painted wood panel covering the length of that top?