Well what i do is i make a C shaped table area out of tables. iI currently have a big shelf for the huge stuff, think 608C analog oscilloscopes and power supplies. Any space i waste on the rear of the shelf doubles as a cat bed or storage depending on who you ask.
Then i have two main work benches, one for parts one for actually working on, both have an overhang shelf . On my workbench for actual work the overhang holds my main power supply, a monitor, two multimeter's and my soldering station. The other overhang shelf has, HP 5340A (it doesn't fit perfectly but well enough) as well as a couple more multimeters and power supplies.
Now this only leaves the third table, the one that makes it a C, and there i have two secretaries table's, my laptops and more small parts.
EDIT: It should probably be noted that i am working out of the equivalent to a large broom closet, about 36 SQ feet.
As far as functionality is concerned it works quite well, bit of a mess but it does work. I find it is useful to keep somethings, like the oscilloscope, frequency counter, or function generator at eye level when you sit, good for both readability and adjustments of them.