Open storage using an Ikea system (discontinued) was a very effective and inexpensive way to put a closet in our bedroom. We use it in each of the boys' rooms and in the living room as well. Plastic storage boxes fit neatly underneath and above.
Perfect for our workroom off the garage: Build an Organized Pegboard Tool Cabinet and Simple Workbench Love the little cubbies under the hanging cabinet for hardware. Maybe put cabinet doors on sliders that can move?