Not a Pro.

I would want to keep it, but change out the sink and cabinet to something office like, maybe stainless steel sink and cabinet. It would have a cold and hot tap that I could use for tea and water.

Should you not want the sink:

not a pro either, but the office will be 25% larger if you jettison the sink entirely.

I assume you are eliminating the current bar area? If so, I'd place a floating desk top on the long wall (right) and integrate shelves (floor to ceiling) on the wall at the end. You can make the the desk top perpendicular to one of the lower wall shelves that will give you added desktop in a small space. This is a little more custom looking and "unexpected". You'll love it. Good luck!

I was looking on Pinterest for floating desk ideas

It seems like a great use of the space. Please share photos of the completed project!

Project is finally completed by a handyman who specializes in carpentry work. Now I am looking up ways to organize and decorate this space. If you have ideas or pics please share. Thanks.

You need a window treatment with pattern and color. Some plants. and a great looking chair!

Are you keeping the carpeting? if not consider a patterned carpet tile to add a lot of drama to the room.

Much improved! How about file storage or closed storage? I would probably add a drawer unit below the counter on the far wall. Even if you only use the office for paying and storing bills, you will need some kind of storage. A leather swiveling chair on wheels, a plant or two, some art, a simple trash receptacle, and several attractive storage boxes on the shelves should complete the office necessities.

Final pics