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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You definitely don't need to find whatever you've got in the drawers scattered all around the place when a drawer flies open. Every closet has a specific storage criterion. Various shelves can be created by employing old books.