Will you post a pic after you put some things away? It's hard to suggest changes and furniture arrangement with the room pulled apart. A rough floor plan would help as well.

I would look into natural blinds or shades for your windows. You don't seem to have the clearance around the window in the dormer for curtains.

Looks like you've been using the area for storage too, so take advantage of this moment to de-clutter, and eliminate items that you can live without this space. You could gain some floor area if the cubby cabinet were placed vertically left of the window. Is the "office" for actual work from home, or just for fooling around on the web, paying household bills, etc.?

Yes! Will clear out and post new pics! I agree, need to get rid of a lot!
The office is used for actual work :)

Thank you!