My workshop is currently in the basement and provides enough room to work comfortably.  I can handle a full 4’x8′ sheet in either direction on my table saw, as well as having ample assembly space on a 4’x8′ work table. The majority of bench-top tools and router table are all on wheels for manuverability and the “Oh my, what a few extra dollars would do” is to build the 16′ storage cabinet/workbench for the miter saw and mortising machine and to also add a stationary jointer to replace the bench-top version I now have.  A 14″ bandsaw and stationary lathe would also be added.

Because it is in the basement, it takes advantage of the household HVAC and plumbing. The only real downside to the space is having to make sure the projects I build can make it up the stairs after completion.