Would you be opposed to using the space as an informal dining room or sitting area?

Some option to go with couple of chairs and wall art above.

I love the siting option. Any ideas with rustic traditional style?

Why not move the table and chairs into that space, which gives you a large room away from your other living room for a second seating area. Otherwise, I'd use two comfortable armchairs with a small round coffee table.

More options to get some rustic decor instead wall art

or with more rustic chairs

I would take advantage of that wall and decorate it, and the area directly in front.

Now, I realize these aren't your colors or rustic style, but just look at how the wall was done. you could do similar lower cabs, top w/solid color quartz, and do shelving or even some type of tile on the wall.

if you like the traditional/tuscan-rustic look, use slate tile for the walls and a wood cabinet with glass. add a beverage bar (no sink) these are split face slate ledger tiles. would work w/your granite.

would look something like this (minus the sink)

change out the lights.

along w/a little table, you could make that wall a type of coffee bar, or dry bar,

similar to what Celery showed you, but put some type of cabinet/bar thing on that wall. (ignore this window)

or buffet cabinet/credenza. I like this w/the diff sconces, the taller upper cabs, a coffee bar area, even the tiling under the shelving is pretty. if you don't want a breakfast table, get a few comfy chairs

you could also try something like this book case (Ikea hack) paint it like shown here, decorate, and bring in a few chairs to seat in front. maybe a rug

you could get a vintage wood buffet or credenza and just do shelving above it, or try something like this. maybe do a wall treatment like this vertical tongue and groove

Ikea

or you could do a setee against the wall, a nice pice of art, new sconces and a breakfast table

These two photos have used crendenzas or buffets. if you find an old one, paint it! get some cool art to hang above it.

if you like the rustic, do the wood shelves.

no uppers on this one. just a longer type of buffet, beverage fride some art.

Either a large art feature or some recessed shelving would be great in my opinion. Love the dog too of course.

my immediate thought was a bar or china cabinet/display area with closed storage below (sideboard /buffet or built-in) with open shelves or a hutch above. In front of it, put a small pub height table w/2-3 stools, or you could do 2 comfy lounge chairs facing each other with an ottoman in between. Bar/storage serves kitchen, living and dining spaces well especially when entertaining!

Liquor or coffee bar or tech hub of the home.

What needs are not being filled by your home?

I have friends who entertain a lot and could use a bar or coffee area and additional seating.

I have a daughter who has a side business baking/decorating cakes for weddings and birthday parties and has to use her dining room table when she is icing and decorating the cakes.

My sister turned her dining room into a game room, again she entertains a lot and often has friends/neighbors over to play games.

I do a lot of arts and crafts and would use this space for my easel and a sewing cabinet.

One of my best friends has all of her silver clad show saddles displayed in her old dining room.

How do you imagine this space being used?

It looks like you could easily do a lot with this space. You might be able to do a bar area/coffee area or a nice sitting area. Here are some of our designs that might help you with ideas.

This Is My Happy Place · More Info

You Want Warm and Cozy? · More Info

Country Club Living · More Info

Warm Family Home · More Info

Sunrise Model · More Info

All ideas are wonderful. I think I’m missing a sitting area where I can have coffee or wine with my parents or one-two friends. I don’t have a lot of people over all the time. I’m not a big liquor drinker so a bar is not my style

the bar doesn't have to be for liquor. you could do coffee, or something else.

or, just make it a buffet across the wall for extra storage. maybe put shelving above it, or a tv, or display some collectable. Or, just do a nice piece of art.

Without seeing your living room/adjacent room, it's hard to completely say. But why not a library/bookshelf with a round seating area? Intimate seating section without tv.

And I know you didn't ask, but since your dining area has so much room, your table seems small. A longer oval or rectangular table might be better for your space.

Eclectic Family Room · More Info

Historic Irving Gill · More Info

My Houzz: Art and Colorful Finds in a Manhattan Apartment · More Info

Family Rooms · More Info

I like the ideas modpod shared, four chairs with backs facing the living room and dining room, a coffee table, two end tables between chairs, a rug with a pattern for interest and a credenza with photos above or bookshelves to fill the space the lights. it's hard to recommend style based on what I can see, your dining room table is ornate but the back of the couch looks more clean lined. more photos of your living room would be helpful in style suggestions. good luck!

I'm going with library/sitting room. Might be a very cozy spot for pulling out a book or having family game night.

If you do the idea of open shelves on top and a long closed set of cabinets below, you’ve got a neutral setting for a variety of needs - a coffee sitting area, an art project area, a library for quiet reading, etc. one long cabinet, two high shelving units and art in the middle will give you options in the future as well. Who doesn’t need more storage space?

I’d put a loveseat and a chair or two comfortable chairs to form a secondary conversation or reading spot. Add a rug and a smallish side table with a lamp. I would change the ceiling fixture and sconces.

I would get 4 comfortable chairs in a fun color, place them around a coffee table and use a large piece of art that has the color of the chairs as one of many colors in the art.

Some images for 4 chair conversation seating arrangements

http://www.astoriedstyle.com/conversation-seating-four-chairs-in-the-round/

A little different - swiveling around casual, low-key.

Might be a place to repeat the house's style, and more whimsical, with unique item, or art, or...

W 36" / D 36" / H 16"

Minara II Brown Leather Wrapped Withwood base ottoman · More Info

Nourison Paramount PAR15 5'3"x7'3" Beige Rug · More Info

Modern Farmhouse Home Decor 'Oak Tree I' - SST Steel Country Rustic Oak Tree Art · More Info

W 39" / D 26" / H 20"

Acme Nate Memory Foam Storage Ottoman with Tufting, Mustard Fabric · More Info

Many options. 2 small ones to move around - Maybe you'd like upholstered chairs with 'wilder' colors -

Monarch Leather Cube Ottoman in Red (Set of 2) · More Info

Paramount Par15 Area Rug, Multicolor, 5'3"x7'3" · More Info

GDF Studio Scott Knitted Foot Stool, Red · More Info

Simple shapes? If you find a pattern, could have solid flat weave rug-

Madison Park Slub Weave Wide Seat Swivel Arm Chair With Navy Finish MP103-0697 · More Info

Safavieh Cape Cod Collection CAP204 Rug, Ivory/Blue, 5' Round · More Info

Accent Chair w/ Ottoman Round Arms Curved Back French Print Script,Beige Floral · More Info

Lombardi Transitional Rug Pebble, 5'3"x7'6" Long Octagon · More Info

Destry Storage Ottoman With Chair, Blue · More Info

Briley Ottoman, Java Navy · More Info

Love the coffee area and adding porch chairs a rug and beautiful art on the wall.
I did purchase a new dining room set and the other one that I had I will be getting rid of it but for now I just put it there in the space that I want to change

Here is new dining set to give idea of style to match that space I was asking advice on

Adjacent to that empty space is the immediate living room area

I don’t like the sofas as I am thinking of getting a light cream sectional to go against the window. I know somebody asked about the other area which this is the area so you can have an idea of what I like so I think I am traditional but I do have a lot of wood and metal elements

I agree with the sectional idea , this is a joybird. If theres an option of pillow /ottoman washable covers; I 'd say get a whole single color set for all cushions (like this blue) and then order half 'really bright orange" and half microfiber'sh hazelnut or walnut speckle; (unknown manufacture availability) this way you can move the sectional around and get different feng shui vibes to your room without necessarily needing new furniture or stuck with same color