With crappy design, 200 sq ft can feel like a confining trap with little functional value. With great design, like this little room by Moscow& Architecture, 200 sq ft can feel open and perform like a space much larger than its tiny footprint would.
Bed couch with draws, shared room, space saver. this could go in bedroom area. like the shelves idea, too. can add a light wooden dining table and a few comfy folding chairs to make cool dining area in bedrm space, if bed moves to living room area.