Hard to say for sure without pictures, but I vote for Option #1. It would be good to have a solid wall opposite the desk area so there is no glare coming from the window. Also, you can hang up some sort of bulletin board and/or under-cabinet type lighting to illuminate the space in the evenings. if your concern with option #1 is the closet door clearance, you can switch that out to either bifold doors, no door or even hang a curtain.

If we do this, we are going to stay there for at least 5 yrs or more, who knows... But since we are going to remodel kitchen/bathroom at the same time, so we of course will stay there for long. In order to make it a loft, I will have to break down one wall only (w/ the door and the electrical outlet/switch). So it will cost money to move the electrical outlet to the other wall. And since it is one wall, I don't think it is that hard to put it up again if the future owner doesn't like a loft, but again, I don't know how much it cost to build a wall, you know... I just don't want to create a mess and regret later... So I would like you opinion. And anyone who has a loft upstair, do you think it is useful? I am afraid that we make a loft, and still go downstair for activities :-(

Post over in Home Decorating. Lots more activity there, and people who are real whizzes about this sort of thing.

Thank you everyone for the suggestions!!! I am going to go take a look at the place next week. The furnishings pictured are not ours but are the apartment model's. My main concern is the bedroom not being a cozy comfortable space. I'm a fan of open concept as much as the next, but I like my bedrooms to feel enclosed and safe. I know there is at least a bathroom and two walk in closets in the bedroom. What I am thinking now is of draping some nice curtain panels to give it the semblance of being an enclosed space. Might be cheaper than the panels previously suggested, but give the same effect. I also love the idea of moving a chair to be near the rail, as well as having the dresser next to the rail. I will post more pictures of the actual space as soon as I have them. Thank you everyone for your time in commenting!!! PS: Just to clear my fiancé's good name, he was trying to surprise me by taking care of this task and was able to get a fantastic deal on it. He fell in love with the floor plan, and thought I would too. Poor guy....