I HATE corner fireplaces who ever decided this was a good idea was an idiot arranging furniture is a nightmare with them as for taking up space that is really more a design element you can have a raised fire box and have it take up no floor space when mounted in a wall. If you have a really small space I would rethink a fireplace.

Assuming the fireplace is going to be used to heat the room or house, it should be located on a back wall where the heat can emanate throughout the room and/or house.

We have a pellet stove fireplace insert that heats most of our house other than one back bedroom. We use a couple of small fans to force the heat throughout the house. It works remarkably well so long as we aren't have a cold spell.