A floor plan would help as well as more photo's of the room. It's hard to determine exactly what to do without more info. The space does sound big enough though.

Look here on Houzz for laundry room/office photos. Go to search box at top of page. Many ideas are shown.

Absolutely! And there are tons of ideas to look thru.

The area sounds big enough. Is there a window in this area? No gases being emitted from the furnace? Start with insulation in the walls and sheet rock. Some hardware wholesalers give slightly damaged or uncovered insulation away for free. Not difficult to do it yourself with some help. A good thick underlay on the floor and a room size carpet remnant (Home Depot has them if you ask!) Put a screen - 3 doors hinged together - from architectural salvage yard) over the areas you don't necessarily want to see until you can see your way clear to building a cabinet over them.