I feel for you- our bedrooms are somewhat odd in that they can only be arranged in certain ways, due to doors, windows, etc. It almost feels like the room dictates what you have to do with it :( I've made a point of just working with the most practical layout. How much "closet stuff" do you have? Clothes and other items that you would want to store in an enclosure. I have to agree with annkh_nd that you would just be moving the storage around with the bed in the closet. It also looks like by moving the bed into the closet you lose your nightstands? Could you put a dresser or other chest of drawers in one side of the closet? Then hang short stuff over the drawer unit in the closet, longer stuff on the other side? How about a small storage unit of some kind on either side of the door off the foot of the bed? Would you have enough room at the foot of the bed if you were to put other pieces there? How about storage under the bed? Either in a platform that has drawers/cabinets in it, or in the form of under bed boxes? When DH and I lived in a small rental unit, we ended up putting our full sized bed against one of the walls. I didn't mind sleeping between DH and the wall, and generally got up after he did at that time. If I got up earlier, I would just go off the foot of the bed. Personally, I'd prefer the bed against the wall, to only having a narrow foot or so on the side that felt like a chasm.

With an apartment that small, I wouldn't be that worried about company. I for one would not want to fuss with putting my bed up and down each day. Get a daybed or futon and use as a couch and bed. Get a duvet to cover you and that's that. Or build a loft bed if the ceiling is high enough. I'd get one of those tables that is either round or square and had two fold down sides, so you can fold up when you need a work space or have company, and down when it is just you. I had one for years in my apartments, the extra chairs store under it, which is also nice. It comes in square, round and oval variations. Get a rolling coffee table and maybe some rolling storage files and boxes so you can roll out various things you might be doing in the apt. and then stow in the closet when not in use. Get a good Internet connection, kindle books and a library card so you don't need a lot of media equipment.

Hi Nikki- What you do with your apartment really depends on your lifestyle and your needs. Do you entertain a lot and have people over for dinner frequently and need a table for 6 or not? Do you work at a desk frequently and need your computer and printer out and really need a desk and a return and a formal work space? If you are a social gal and entertain frequently, keep your dining room as your dining room and get a table and chairs, so you can have friends over at the drop of a hat, even if you are getting take-out. You can have your office in your living room, with bookshelves and a desk (make sure you have drawers that lock. Find a file cabinet that is attractive that locks as well, and a way to house your computer, printer, mode, router, external hard drive, and all your other things that conceal them and can be locked. Your bed can either be a convertible sofa (they are way more comfortable these days, or a Murphy bed as mentioned earlier. or a regular bed that is disguised in a variety of ways, some of which are shown above. If you live in a city, the odds are there are many small apartments and singles living in them. It might be worth it for you to consult with some experienced interior designers in your area about the best use of your space for your purposes. They may come up with some fantastic ideas especially suited for your needs and purposes and know just the people to make the items or where to purchase them.

I agree the sofa is pretty , DO NOT put TV above that fireplace that brown whatever at the front of the pic needs to go along with all the other clutter on the floor and the bookcase. Then some proper drapes . The problem is the sofa is really nice and all the surrounding stuff really does not work with it. Get a nice cabinet to mount the TV above and put that next to the fireplce then put the sofa on the wall oppositeI actually like the cowhide with the sofa, The easy thing is too remove everything in the space and then only put back waht you need to begin with . So in your case the sofa a cabinet for the TV and the TV The art needs to hang on walls where it it works those 2 pieces on the right wall do not work there so when you buy your TV cabinet make sure it is quite long and with some good storage and get rid of the bookcase. Add some nice drapes hung properly then a coffee table a good floor lamp, then see what else makes sense and let that sofa be the star.