This is the perfect place to put a pull out bed. I always look at those beds and think they're impractical because it's too hard to leave all of the open floor space needed for one but I'd happily do it for this library/reading space
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Desk idea - Balance a wooden board across two IKEA storage cabinets, and boom—you have an instant desk with plenty of room to stash your office supplies. The one above was spotted in a home designed by Shift Interiors.