I love murphy beds for studios and there are so many really cool ones some even incorporate a desk and some great storage . Then it could go on the wall next to the walk in closet that would free up a lot of space too for seating and dining. I ahve even put the TV on the bottom of the murphy bed in some loft spaces to save spac e.The murphys are not cheap but can go with you where ever you go next they are great in so many spaces . BTW very comphy since you choose the mattress that works for you too

Thank you so much Patricia! I have certainly thought about that! Though it is a bit out of my budget range :/

Here's one idea. The upper area seems like the natural spot for the bed, to me. The Kallax unit provides some separation and storage. You could also use a 5 x 8 rug in the the living area for more definition and separation.

Kallax unit with drawers facing the kitchen area so you don't have to look at the kitchen while in bed. And it provides extra storage.

Examples of litter box furniture that can also be used as TV stand

C-table

Small dining spot