Put her sleeping area closer to the door and the play area closer to the windows. The natural light will be better for playing and you won't have to step over the toys at night when you go check in on her. You could put a nice sized area rug to mark the play area and make a rule about toys staying on the rug ... you'll thank me later for that idea! :-)

Adding on to chispa's idea, you could divide the room by putting a long dresser coming out of the wall facing the door and a book shelf or toy storage on the opposite side.  2 L brackets against the wall on each piece for safety and a flat bracket on the open side or top if you think it's necessary.  She might be less tempted to get out of bed and play if she's not laying there looking at them. Nice space!

Windows should have some type of safety film and probably gates. Definitely do not put her bed right near the windows. 16 months old is a toddler, so I would suggest not adding any hard furniture to this room, other than her bed, and that should also have protective padding wherever necessary, too. If you are planning to use a coffee table in your living room, I suggest an ottoman style. And you can also use storage ottoman(s) in this room for toys, etc. Some nice colorful art for the walls.