You guys are lucky, I live in a motorhome and my entire workbench area is 18" square + room for a laptop and a tiny 1-ch CRO. And if I want to eat I've got to fold it all away :(
Fortunately these days you can still do a lot in that space, in a previous life I had two large workshops under the house, but then I needed it, for example
My "laptop" was two huge desktops.
My terminal used for outputting debug info was a VT100 or something that needed a wheelbarrow to move it around, now it's just another window on the laptop.
My ICE was a large box of tricks, now you hardly even need one or an most a small JTAG ICE.
My logic analyser was the size of a suitcase, now it's half the size of an Arduino.
My CRO was the size of another suitcase, now even though I've only got a cheapy it's very small, and I could get a USB CRO that's tiny.
My development/evaluation boards where probably 1 foot square, now you arguably don't even need one, or maybe an Arduino is the equivelant.
My PCB design needed a huge light table and plan drawers full of draughting paper and Bishop Graphics stensils, now it's a program on my laptop.
My reference library was 100s of big books on shelves, now it's PDFs and the web.
And while not size related, all the software, compilers, IDEs are free
It's a brave new world in embedded land, and I'm luv'n it.
Now if I could just get a larger workshop.