I love the space! I would put a couch against that wall and i would put a set of pretty sitting chairs and a little table by the window :) Let me find a picture...

Contemporary Living Room design by Toronto Photographer Lisa Petrole Photography

Sorry about that I don't know why that picture embed is not working. Here's something from my pinterest board :)

Have fun with the faux fire place, find a stained glass piece and maybe a table eisle and put candles or batterie lights behind it. Of course you could put a flat screen in there. Ikea ha great "small sized furniture" and Craigs list is a great way to start to find deals on furniture. ( remember to measure anything before purchase. Your space is small.

Ahh thank you all so much for your wonderful input so far! Extremely helpful! Thank you too for the pictures! :D

ossi - I should have noted that the living room is a rectangle shape rather than the square-looking shape it appears in the picture. :) I should have supplied measurements I guess! Doh! >.<

Heres a room that looks very close to what you have. Love this setup!

Congratulations on getting such a beautiful first apartment. I'd definitely start with a sofa and 2 chairs, and NOT a loveseat! A lot of us houzzers are anti-loveseat. Two chairs offer so much more flexibility than a loveseat. I'd place the sofa on the wall opposite the fireplace. The two chairs would go in the window with a small table between them.

You said you wanted a "big old sofa". I hope that was just a figure of speech as what I think you'd be far better off with is a sofa that is of a nice size, but not too big. I'd look for one with skinny arms so that you have more seating space which is what a sofa is for, after all! A sofa that is 84" long will fit in most homes nicely. Watch the depth of the sofa too as lots of them have gotten far too deep. I'd go 39" deep max. Remember that this is your first apartment, but not your last so stick with pieces that aren't too big.

Pay attention to the size of the chairs also. I'd stay under 35" wide, and again with narrow arms. My recommendation would be solid fabrics for both the sofa and the chairs. You can have fun with pattern when you get around to a rug and pillows.

You'll also need a coffee table, plus a table to go between the two chairs. I adore the faceted mirror table from West Elm below and would make it a must have. The coffee table below with the marble top is lovely as long as you don't spill red wine on it!
Carolyn Albert-Kincl, ASID

My goodness.. I am quite overwhelmed! Thank you ever so much Andrea and Carolyn for giving the time to help me!

I definitely *wouldn't* want a big old sofa, hehe! :) - Especially nothing big and clumsy-looking by those windows. My tastes are very flexible though, and I DO confess to adoring a big old Chesterfield, haha! (That will *certainly* have to wait until my next place!)

But I think I shall be going with Andreas idea and getting a nice little sleek table and chairs set for by the windows. Thanks again! You are all more help than you know!

On a side note: This site is too addictive!

Your welcome! Good Luck and post some after pictures! :)

another lil idea for the bay window..... a comfy little upholstered window seat with cushions on it could sit lots of people relative to its size...

that room is really nice :D