How do you use your space? Do you host much, and when you do, do you usually need things that requre a lot of storage when not hosting? Or perhaps do you have wall space that you can murphy to provide more table when hosting?

Thanks for the reply! Honestly it will most likely be just us unless we have people over (if we do we are worried about eating space) the two rooms are divided by a wooden beam on both walls and at top. I don't see us needing a lot of storage and we have a small room for extra storage. I'm more worried about counter space

I liked the table option at first, but then you have very minimal counter space to use day to day. So that's your call - do you want that counter space? I think it's more realistic to use option 1. If you have kids, you'll need the prep space and storage.

Also - did you have trouble uploading photos.

Strong vote for a layout that gives you a real table. More comfortable for everyday seating and for entertaining. Your unfinished basement is your answer for storage, whether it's cheap utility shelves or building out a finished pantry area. For extra counter space, you could have a pullout cart--a wheeled cabinet that slides under the countertop to serve as a normal set of drawers, but pulls out to serve as an island work space. See the second picture in this article:

Also, kitchen tables can be really useful secondary prep surfaces!

Ok. Looks like in the pics you can go past the beam. Perhaps you could keep your peninsula and build it in a bit tiny house style. Incorporate pull outs? Like how some folks have incorporated bread boards or hidden tables.

Like a slide out: https://www.treehugger.com/san-juan-tiny-house-rocky-mountain-tiny-houses-4854925

Or expandable like this DIY: https://mountainmodernlife.com/diy-expandable-table/

And dang it I found a good pick of a tuck under table, but pics aren't working. So put in a couple links for ideas.

I kind of hate peninsulas and islands and usually prefer a table. However, I voted for the one with a traditional peninsula simply because your kitchen has very little storage. Yes, I know you said you have storage space elsewhere, but that just looks like too few cabinets to me.

I'd go with the table option, but add upper cabinets by the sink. Storage helps you keep stuff off of the counters. Find another place for the microwave (I assume that's the black box on the counter) - maybe a dorm-sized micro on a shelf. I chose to live without a microwave for extra counter/storage in my very small kitchen. Can you move the range to the opposite wall by the refrigerator? Worth a look.