TL;DR (Too Long; Didn't Read)
If you need to divide the space into a both a living area and an office, dining or study area, shift this arrangement into one corner, and add a desk or table, chairs, task lighting and art to create a distinct separate area. Do not use a screen or room divider or the room will feel cramped.
Decorating a 13 by 23 foot living room is a design challenge, but it doesn't have to be a daunting one. Maximize your small, narrow space with a creative furniture arrangement, well-chosen accessories, excellent lighting and a color scheme that keeps the space feeling open rather than squeezed. Narrow spaces can be intimate, cozy and easy to maintain. And when you personalize your decor with a dose of snappy finesse, nobody will think about the room's lack of square footage.
Place the couch against the longer wall. Position the couch opposite the fireplace if you have one. If not, place the couch in the center of the wall.
Make the space feel less rectangular by placing a square area rug that is slightly wider than the couch beneath it to designate the seating area.
Add three armchairs to the seating area; two on one side of the couch, facing the center of the rug, and one on the other side. Asymmetry keeps the room from feeling too formal.
Add a coffee table to the center of the seating area. Add two side tables, one between the two chairs on one side of the rug, and one beside the chair on the other side. Choose tables that loosely cohere style-wise, but be wary of choosing an overly "matchy" look or the room could feel generic.
Decorate with accessories. Choose two bold table lamps, one for each side table, to provide alternatives to overhead lighting and to add a design element. Select one large or several small vases for the coffee table. Hang a large mirror over the fireplace, if you have one. Hang a big, vibrant art piece over the couch and on one of the walls perpendicular to it; arrange bookshelves along the opposite wall.
Outfit curtains in floor-length drapes with a showstopping color or pattern to make the room feel complete. Choose a color that contrasts with the rest of the room to add energy and dynamism; choose a closely-related color for a soothing effect.
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