Can you incorporate a niche in your shower with a bench seat? It is always nice to have a place to sit or place rest your leg while grooming! I think the depth is too great to utilize all of the space for towel storage. Might be better of adjusting your framing to either enlarge the closet or the shower. You will thank yourself for it later.

Thank you sooz, I was thinking something like that too but not sure if they make pullouts deep enough for this space. Let me know if you know anywhere you get get them that deep

I would incorporate the space into the shower.

Thank you Paley! our shower is already going to be 7 feet with a bench because we are doing a steam shower:) I would really like a place for a little of storage that is why we were making this closet area. I know we can decrease the depth but I dont want to waste any space if we don't have to.

I was thinking something like this https://www.houzz.com/photos/horse-ranch-contemporary-bathroom-denver-phvw-vp~5141560-Ranch-contemporary-bathroom-denver

Or https://www.houzz.com/photos/venice-cottage-beach-style-bathroom-los-angeles-phvw-vp~6572452-Cottage-beach-style-bathroom-los-angeles

but obviously somehow using the deep space...

Roll out shelves are great here - they don't need to come completely out - just enough for you to comfortably reach things on them. Maybe the bottom part could be a roll out hamper. You could also utilize part of it for the wall cavity needed for a niche on the shower side. Why not close it off from the front altogether and have open shelving on the inside where the washer and dryer will be. The shelves will be deep enough for all your laundry supplies and off to the side, out of sight.