Install cabinets 30" tall the depth and width of the niche. Above those cabinets install open shelves.

To me, the ceiling height stone fireplace may look odd if it is not detailed properly.

I would ditche the niche.

Will you put a tv in that space? If so, filling it with built ins around the tv might look better than a huge blank wall with a tv hung on it.

Getting rid of it would make arranging furniture much easier.

Love the niche,

a great place for a great piece of wood furniture to bring some warmth to the space.

and a better place for a TV than over the fireplace

Based on the outlets, it looks like they think you'll be putting a television or other AV equipment that needs power and internet there. If you will, maybe leave it? It looks like the most logical wall for that if you plan to use the room that way. Do they have examples in the model homes of how they think that space will get used to help you decide?

You could do a nice built-in next to the fireplace. If the TV is wider than the nitch, make the shelving extra deep and extend it out.

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If you choose not to keep the niche, will the footprint become wasted space or be utilized somehow in the space on the other side of the wall?

Actually I asked for it to become a closet on the other side which is right behind the master bedroom door. I saw your post earlier about the fireplace would look odd if not detailed correctly..not sure what that meant? It's supposed to be stacked stone in white. It has a light wood mantle and yes, we normally are guilty of hanging out tv there. I was going to get a frame for the tv. ;)

Some option :-))

That is really neat. So you are not a fan of ceiling height fireplaces?

I think the niche balances the wall with the door on one side. I had a house once with a door on one side of the fireplace and nothing on the other and it drove me crazy. Could just be me, though. It does give you space for built-ins or a TV.

Regarding the full height fireplace, I am not personally a fan of those. I think they "dehumanize" the space, being so tall. But I don't like double-height rooms, either. For the same reason.

Your decision is determined by the furnishings layout for the room, the size TV screen you'd like for the room and where you wish to place the TV

Not sure I would waste my money on extending the stone up the wall. You could accomplish the same effect with some well-placed art. Once you find out the acoustics from this large room with the catwalk are impossible to live with, you'll be looking for materials that soak up the sound.

Also, you need a much larger ceiling fan for this room.

Here are options for you to view.

Note the difference in appearance if the small-scale stacked stone is used versus a stone veneer that looks more like actual stone. IMO when the room is two storeys you have to use a larger scale stone on the fireplace.

Here's a successful FP with both stone and wood.

Depending on the style of the house, stone that looks like it is just stuck to the wall may not be as convincing as a stone mass that extends partially into the space. And balance, not necessarily symmetry, is important.

This is a good point. There is a second option if going with a chunkier stone, much like this example. It is still pretty much stuck to the wall but it may be more appropriate for scale? I just happened to like white (the kitchen is also white). The build will not let me extend the fireace out unfortunately. :(

I like how they did with niche here

You guys are amazing! Thank you so much for your thoughtfulness.