Have you looked at cable lighting it can be strung from wall to wall you can have different heads for different spaces, they can cross over each other all kinds of options, run diagonally so cool.

Agreed on the big piece of art, good advice. I will look into some string lighting as well. Thank you!

Is this a condo? Does it have power at the ceiling above this space? IF not an easier fix would be a large floor lamp such as the Flos Arco or any of the copycat designs.
Go for things that have scale.

I don't believe there is any ceiling power access unforuntately! Its an apartment. I do like that floor lamp a lot. Any other thoughts on floor lighting? I'd like it to match my couch I think?

What are your thoughts about a light above the closet area? Maybe a plant+light? Theres like a 3 x 4 foot space there.

The couch:

down lights from the ceiling are best for cleaning. for "atmosphere" you need accent lighting, like table and floor lamps.

As a rental I would say that any lights in the upper ceiling are out. And probably any new outlets in the walls for other kinds of lighting are out as well. So you are limited to that which you can plug into an existing outlet, unless you can convince your landlord to do some work.

Your couch has a very tailored, mid-century modern look about it so the Arco lamp would work well.

Or you could use a pair of lamps like this.

What chairs are you using? Something airy and open. Its not a big room so don't crowd it out.

Coffee table?

Side tables? Try

As for the top of the closet. It's a big useless space, but could be a fun spot to create an art tableau. A large sculptural piece - anything really. Beach balls stacked 5 high - or a purple mannequin with his legs hanging over the edge - a four foot high pyramid of stacked Starbucks grande cups - a full sized fiberglass sheep - anything would work if you make it cheeky, fun and a bit irreverent. And if you can get a plug-in up-light at the base of your "art" then it becomes all the more dramatic and more interesting. Think of the shadows that an up-lit sheep would cast on the wall. It would be kind of creepy and fascinating all at the same time.

Have fun with that, cuz the rest is really serious !

Is this a rental?

agreed some artwork with a pop of color would be great on the walls...you have a lovely blank canvas. We actually make custom painted glass lightboxes which could double as artwork plus add in some ambiance lighting to the room.