Something sophisticated, yet feminine...

https://www.rhbabyandchild.com/catalog/category/products.jsp?cellBackground=false&parentCatId=rhbc_cat377261&topCatId=rhbc_cat361004&categoryId=rhbc_cat353002&sale=false

I'd maybe build in a "homework bar" with two work spaces up against the wall where they could use computers. Perhaps create a perpendicular surface in the center of the bar for crafts, games, etc. with plenty of storage space for art supplies and materials. Something like these but with subtler colors so it doesn't clash with your living areas:

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My only hesitation with a homework bar is I feel bad making them face the wall. I was thinking cabinets against the wall with a photo gallery above, and a long table off to the side. Kind of like how I indicated with the blue tape. I just don’t know if it look good that way. I was trying to avoid them facing a wall but maybe it’s inevitable and not a big deal.

The benefit of having them face the wall is fewer distractions. Which will be important as they get older and have to get work done, especially if it's in a more open area. Because they're still little, they can use the craft station/game table more now which would run perpendicular to the bar.

At their age, using their imagination is key. Tent with pillows, a stove is always big hit. Lots of storage and easily accessible so they learn to put their things away. A reading area to curl up. A craft table with supplies handy and where they can share and interact.

On one wall add the storage and art station. On other side of pillars add the tent, stove and reading area. There will be space to walk through but will also be a place to roll around if you add a fun rug in the middle.

Thanks everyone! They already have a playroom that has all their toys, a doll house, a kitchen. My idea for this space is somewhere for them to hang out. For example, when they color or play board games, it’s always at the coffee table in the family room, because they don’t want to be locked up in their playroom as it’s too far from us in the main living area. So this would be a place with a table for art and coloring and legos and games, along with storage for these items, and a chill spot on the floor for legos and such. I just want to make it nice and not too kid-looking because it’s literally right in the middle of a completely open floor plan. You can see it’s not even a room. It’s just a wall. Thanks!!

I would get a fold-out table. Something that's fairly nice-looking that can serve as a side table when not in use by the children.

If you need any kind of storage space something like an office in a cupboard might work as well. When the children are finished everything gets put away and the table gets folded up and the cupboard doors get closed. Voila! All tidied up.

Sometimes having a playroom isolates children as well as having interaction with adults. They also need lots of natural light. Keep in mind that they grow up very fast!

Good lighting on the wall, pretty items -- like here --

Pottery Barn Kids · More Info

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https://www.potterybarnkids.com/products/madison-bookrack-tower/?pkey=ckids-bookcases&isx=0.0.1982.4000244140625

Posting if could work in a neat and trim tasteful way -- as room divider --

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I like the idea of having a crafts table with an open view. This table can seat four, so it’s convenient if they have some friends over.

https://www.modholic.com/products/eiffel-kids-playroom-set?variant=32045507805280&currency=USD&utm_medium=product_sync&utm_source=google&utm_content=sag_organic&utm_campaign=sag_organic&gclid=EAIaIQobChMIisbErdPW6QIVUPDACh18sAfGEAQYAiABEgL8zPD_BwE

Thank you everyone!!! These are all things I thought of and saw as well! The modholic table I saw and liked! As well as the RH table on wheels! So it makes me feel better that we are all thinking the same thing lol. I agree the play room is isolating. I made it for them when we moved into this house a year ago, and quickly found they rarely use it because they want to be in the open with us, which we love. So now we are trying to figure out how to make that happen. :) If anyone has ideas for a layout that would be great. My thought was a rug with a row of cabinets against the wall, and then in front of the cabinets do a table on one side and low profile seating (like beans bags or something) on the other, with room in between to sit and build.

Room divider idea: These fabric panels/curtains are hung/suspended from ceiling.

You could hang a fun chandelier on lounge side, as shown here; if there is no wiring for it, you could use a swag chandelier.

Chandelier is a thought. There are can lights there too. We wouldn’t do a room divider. We don’t wanna close off the space.

On houzz I've seen a few rod options - for the cabana look, I think they keep the curtains at the sides...

Some great ideas here, https://www.pinterest.com/pin/546342998537582689/

Thank you yayagal! I was already thinking that little table and chairs except the full size, from Modholic, so I love seeing it in a room! And I like how the other room is divided. That’s a good idea!

You’re very welcome Evelyn.

Have you thought about maybe going a little nuts with mirror decals? The come in all different shapes -- some purely decorative, like feathers or clouds, others are pop-silly, like a paint "splat" or big lips or eyeglasses, and some are specifically for kids, like fairy trees -- or you can get huge abstract geometrics or swirls.

Even if you wanted to put open shelving against the wall, having some highly reflective material on the wall behind the shelves might draw light and sparkle into that space.

Go with some other color on the walls there. Pink might be good - I've always loved the look of pink with grey... Then maybe hang some curtains separating that space from the rest of the area - they can be open when wanted, but closed to hid the mess/play stuff... Make the curtains with a large fabric pattern

https://www.zazzle.com/tropical_hibiscus_pattern_pink_fabric-256498930883691554

https://www.interiordecorating.com/D-125-Large-Print-Floral-Fabric

Since you already have a playroom and the spot is in your main living area I would not go too cutesy. I'd also want the decor to visually relate to the rest of the open space. Can you share some pictures of the decor in the surrounding rooms?

I'm imagining a large colorful rug, a couple of comfy chairs, good lighting, a big soft ottoman, table and chairs, bookcases, large whimsical art.

Forever stuff with a few age-appropriate accents.

I'd let them help with the choices. For instance, I'd pick three rugs that I like and that work with the rest of the open space and then let them pick their favorite.

Following...

Just curious...
What type of flooring is this in your basement?

How about a couple of suspended chairs?

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I would put low storage at the end of the wall to define the space. I looked on Houzz to find some pics. Then put either a round table, or conversely you could use a long table coming out from the wall as the divider. See these pics: https://www.houzz.com/photos/retro-chic-teen-girls-bedroom-contemporary-kids-new-york-phvw-vp~20641010

https://www.houzz.com/photos/contemporary-new-jersey-kids-study-contemporary-kids-new-york-phvw-vp~19533155

https://www.houzz.com/photos/classic-contemporary-game-room-transitional-kids-miami-phvw-vp~15695208

https://www.houzz.com/photos/house-on-the-heath-contemporary-kids-surrey-phvw-vp~14916818

I wouldn't want to spend too much for child sized furniture. For example, if you do a table that would be a good size for them now, it will have to be replaced as they get bigger. So I probably wouldn't stress out too much about making it match the rest of the space. You can move toward creating a more cohesive look down the road as they approach their teenage years. It's a family home. There's no reason to hide the fact that you have little ones. If you make it easy for them to clean up and put away as they finish with one game or project, the space will stay uncluttered, which is an accomplishment with young children.

Is this space the walkthrough path between a hallway and the kitchen/living room?

If so my recommendation for a client woul prolly be:
-Murphy style desk along the back wall where you have the tape. It houses all the art supplies while still being easy to fold up & close should you be entertaining or need to quickly clean up.

-Not sure what style your current LR furniture is but if you like it & want to maintain that cohesive nature then I’d recommend checking out PB kids/teen for some chair ideas that they’d enjoy and can still look pulled together whenever you want it function adult space.

-For rugs I prefer Dash & Albert or Shaw for families with kids n pets. The PET line (made from recycled plastic) from D&A is as soft as wool but easily cleaned up with soap n water. The other indoor/outdoor models allow bleaching should it become necessary due to spilled paint, etc.

Costco sells giant teddy bears which my kids who are eight and nine have loved. They curl up in them to read. Costco does not have them now, but watch for them at Christmas. (I’m NOT referring to the 93 inch bear they have now Which is too big and too expensive. The size-down bear was about $39 at Christmas and worth every cent. Maybe they’ll have them again this Christmas. They are soft, high quality.)

Perfectly painted designs, do you have a suggestion for Murphy desks? Thanks so much everyone!! These are all such great ideas, some of which I haven’t even thought of, like the suspended chairs! Someone asked about the flooring. It’s not a basement. This is the house. The flooring is Marazzi tile, urban ash.

There are a few reliable murphy desks sources but off the top of my head I can’t think of one who would have an option large enough (possibly Resource Furniture?). I’d recommend getting a good recommendation for a local cabinet maker or contractor to give you a quote on a custom solution. Then it can not only fit space & have storage for everything your babes will need but you can also be sure its sturdy enough & can be made so the front has architectural details fitting to your kitchen cabinets (which would then tie it into the space beautifully when folded up). The cost would likely be similar to trying to find a commercial option! Hope to see any updates when done- sounds like you’re planning a great use of the space!