Consider Proportions: When everything appears to be roughly the same size, there's no contrast in scale, making it difficult to distinguish points of interest. Currently, each piece along the window is evenly spaced and takes up roughly the same floor area. Mix it up, and integrate these elements with the rest of the room. Rotate the couch so it's back is to the window wall and swap it with the chair. This will help to weave some of the smaller elements into the space.
Create Focus: The living room is fairly large, but feels like a big empty space lined with furniture around the perimeter. To attain a more intimate feeling, connect the furniture within the space. Add a rectangular coffee table to bridge the gap between the chair and the couch, making the room feel more like a gathering place.
While a larger rug would help to incorporate more of the room, pulling the existing rug close to the couch and chair will tie this area together. Angle the chair into the room, with the ottoman out front, to fill the space and create a more relaxed atmosphere.
Add Warmth: Pillows are an easy and relatively cheap solution for adding color and texture. The current pillows look a little sad, and more like leftovers than a conscious decision. Incorporate pattern and color through pillows and/or throws. This will work to soften up the space and make it a bit more welcoming. A large house plant would also do the trick, as well as more artwork on the walls.
Make it Functional: It's easy to migrate toward things that look cool, losing sight of what actually works in the space. Where is there a convenient place to set your drink near the couch? Does the layout allow a group to have a conversation with the flexibility to shift furniture for a TV-centric space? Prop the TV up on a small console placed flush against the wall, adjacent to the window. Locate a large plant in the niche next to the fireplace to hide some of the wiring. This will help make the corner less of an eye-sore and provide a home for the TV and related accessories.
Even with the perfect furniture, if your space doesn't function, it's not a true success. Determine how you live and move through the room and build your space around that concept.
Share your ideas in the comments section below!
Images: Kathryn Wiens

White Enamel Flatwa...
I agree with the points above, and would also suggest some dramatic floor to ceiling curtains to create some vertical interest and fill out that side of the room.
great suggestion w/ the curtains... get some plants as well. I think the rug should be larger or move it in tighter with the couch and put the chair/sidetable/ottoman opposite and facing the couch to give more illusion of 'filling' or cozying up the space. Trust me... the longer you live somewhere, the more it will fill up! Enjoy the space while you have it!
I would suggest swapping the tripod-glass topped table with the barrel-shaped table with the lamp. The barrel-shaped table plus the lamp would add depth to that corner plus both that end of the couch and the chair would have lamp light. And that awesome tripod table would be more on display in front of the window and would look fantastic with a sculptural, blown glass vase with some flowers. (Ooh, I'm jealous. I wish I had that table.)
Agree with ezrazoe about the rug. If all you did was replace that, the room would improve 50%.
Not that the rug is ugly... it's just too small and washing out the room with its neutrality. The room needs a much bigger, solid-color rug in a contrasting color or white.
Then pull everything together with new colorful pillows and some more art on the walls.
(Btw - love the faux rhino head over the fireplace!)
At least everything in there is pretty neutral! That makes it pretty easy to work with. I would either replace the rug with something bigger or if you don't want to do that right away, move it to right in front of/slightly underneath the sectional and then move the other chair closer so the rug is defining a seating area instead of right out there in the middle of the room. I also think more art would be awesome. And more pillows. I love your windows though so even though adding drapes would bring in a lot of color I'd hate to cover up the shape of the windows.
I think that some warm colored window coverings would be great, particularly since you're in SF and it doesn't look like that window gets much sun. Some warm honey or burnt orange curtains would be great, and maybe some more teal accents like the throw pillows.
And frankly, I think that television would look best if you set it out on the sidewalk.
I would rearrange the chair and position it where the ottoman is, angled towards the sofa and then place the ottoman in front. A larger, more colorful rug would anchor the two pieces as well as a smallish coffee table. How about plum as an accent color?
Inexpensive matchstick blinds on the windows. Light colored drapery panels. It's hard to figure out where to put the TV from the pictures. Pick a color, any color, and put it in the room in different places. The room is sunny. Add a big plant.
I think a bigger piece of art would look better over the sofa, or a grouping of more pieces. The current piece doesn't seem dramatic enough for that spot, and the gray matting looks dull compared with the warmer tones of your furniture. If you keep it there, I would suggest switching the matting to white.
I would definitely replace the pillows. I think yellow would look good if you're going to keep the rug. Green could also be nice. Patterned pillows which incorporate some of the colors in the space are always good because they allow you more variety and depth. I would also add a throw blanket folded over the back of the couch in a color similar to whichever pillows you choose. Having coordinated pillows and throws can make a space seem much cozier.
I also agree about buying a coffee table, but if that's not in the budget yet I would move the glass table there, and then put a tall plant in the corner where the table is currently. I'd also add curtains, but I think sticking with airy white ones would be the best bet to keep as much light as possible in space and to allow for versatility if you change the color palette.
Good luck!
I agree that job one is to deal with the rug. Right now it appears to be floating out there by itself, with no relation to anything else in the room. It's not big enough to anchor the whole room, so you just have to pick -- make a little area with the chair, or put it with the sectional. And when you can, a bigger rug to connect everything.
It's a beautiful room -- figuring out how to decorate and live in it is a nice problem to have!
The good news is that there's nothing there that can't be tweaked. Yay for neutrals!
But it needs some more color, also some sparkle. A new, bigger rug, curtains, cushions, maybe a throw with some color in them would go a long way. More art, or bigger art would also help. The area over the fireplace is difficult and I don't think what's there now is helping much (though I like the pieces individually. Maybe try a mirror in the long narrow space and arrange something with some color on the mantle. Flowers or colored branches or topiary.
The other thing is to rearrange the furniture. It's all against the walls now and nothing relates to anything else. Bringing the sofa much closer to the fireplace might free up enough space for a desk or something on the back wall or in the corner. It also might make the rug size work better. And I might even try the sofa with its back against the windows and the chair and ottoman in the corner where the tv is now. (Can the chaise part of the sofa be moved to the left side instead of the right side? If so, that's something to play with, too.)
Putting the tv on a rolling cart so it could roll back into the alcove when not in use, might also be a good idea.
Pull the furniture away from the walls please,
and create a conversation area. Add curtains, pillows and plants for color, then work around that.
I would actually work with the rug instead of against it. I'd put up white and yellow curtains, neutral and yellow throw pillows, yellow and turquoise and white vases and accessories, and a light wood or white or maybe silver low t.v. table.
Oh, and a light frame for the picture and maybe some light colored wicker baskets for blankets. Plus, a coffee table as was already mentioned.
And get that sofa some legs! It won't feel so heavy if you get a little air underneath it. Great comments from everyone!
Why is the ottoman away from the chair? I think it would look so much better to have the chair further away from the sofa along that wall with the ottoman in front of it. And the rug really isn't helping any. I think the whole place would look better with more art and curtains. Anyway, that's my two cents.
I think it's pretty good for a start. Lovely sectional, beautiful rug. (I agree that it needs to be close to the couch - too bad you don't have 2 of the same size).
Add some colour with accessories, window curtains, etc. The rooms is a nice size, the view looks good and you are in San Francisco! :-)
The neutral walls are classy, but I think a color would add so much personality, especially with all those neutral pieces. Then add contrast and accents with accessories. Unless you can't paint because you're renting, in which case, get some really bold art, as several people have suggested. You could also get a slipcover for the chair. I'm not a master furniture arranger, but I agree that you need to define a space that can serve more than one purpose. Good luck!
hopefully this makes sense.
get the couch off the wall by moving it forward a few feet.
rug moved closer to the couch (preferrably in the nook created by the chaise lounge on the end).
tv on a tv stand in the same corner it's in now.
chair diagonal in the 'book nook' facing towards the couch.
here are your two options for the side table & ottoman
1. use the ottoman as a coffee table, putting the table next to the chair in the 'book nook'
2. use the table as a coffee table, putting the ottoman in front of the chair in the 'book nook'.
overall, that should make it a little more cozy for conversation, and still leave you with 2 defined spaces, as the chair can be used on its own for reading, studying, etc.
at best, if you have the ability to purchase anything, i would say a floor lamp to be placed behind the chair, the tv stand I mentioned before, and some throw pillows/blankets in bright colors to liven it up. oh, and definitely some curtains or faux wood blinds (target has them for $15/ea so $45 and you're windows are covered, can't be that!)
oh nevermind, i see you already have a floor lamp. so there's that. and i missed the glass top table before. so use that as the tv stand until you can find something more functional.
that's two less things on your 'buy list' in my opinion.
I agree with most of what has been said. Move furniture away from the walls, and the lamp should be in the corner (always good feng shui to illuminate a dark corner, and you don't need a lamp by a bright window!), and move the carpet into the "L" of the sofa so you can have cozy feet while sitting on the sofa. And a nice big ficus plant by the window will lend some vertical lines. I'd also love to see some kind of hanging chandelier or something to complement those gorgeous coved ceiling. And yes, replace the framed poster with a piece of colorful, chunky art.
it has to get dark some time. i'd prefer the floor lamp in the far corner, the sectional under the window, the tv where the floor lamp is and the chair where the tv is, angled out with the ottoman. cozy reading spot by the fireplace and small window. big tv viewing spot and that tv not blocking anything else.
oh, and the rug is pretty, but too small. put the white table in the center and the glass lamp on the glass table in front of the bookshelf.then address new pillow covers and a throw blanket. do you have a nice shawl you never wear? a big scarf? it doesn't take much.
Something in me wants to see taller wainscoting, like a big hug embracing the room. Especially if you pull the furniture away from the walls, as many have suggested. I love the wide trim as it is, but my gut reaction was that it should go further up the wall.
I'm no expert at decorating, but since this asks for pointers here are mine: I think the couch shape is actually throwing that corner off & a normal couch along that wall + a love seat along the window would suite this space better. The couch makes the room feel closed off. Neutrals are cozy, but a little contrasting color would help. Maybe some accents that have a darker hue, like navy or emerald green pillows along with curtains with a modest pattern. I would strip the fire place of the white pant, it has no depth. Replace or remove the black screen from around the fire place: hang different art work above the fireplace or replace the frames the art is in to add interest. Since this space needs to be tied together, I'd also suggest a different rug that is larger. And I'd also choose between one or the other of the side tables, since the designs of both don't flow. (I say all this, but if you saw my home, you'd have more to suggest! :)
What about adding console table behind the couch between it and the wall to bring the couch forward towards the middle or the room? Good for some cozy lamps and storage too! Also could you add feet to the couch so it looks more polished and less just sitting on the floor look? Add some bright curtains - hang them high! Use either round side table; not both since they don't match. I could see that firewood container painted oil rubbed bronze.
Replace the dorm room poster over the couch with some real art.
Pull the rug closer to the sofa. Rotate the ottoman in front of the sofa, cover it with a nubby textile and a tray - instant coffee table.
Get a table for the TV that fits in that little nook - and is big enough for a vase and some books to sit on it along with the TV.
Pillows in yellows and creams (match the rug), and some turquoise would look good with the colors you have.
yes, rearrange the furniture. :)
Amazing.. you have so much space.
Stuff that reflects your individualities, that is what is missing.
Nothing that color and accesories and some rearranging won't fix.
Maybe look at clusters-- not able to explain this too well.
Oh, my. By now my back would be aching from moving all that furniture around. I agree with many of the comments above. Until you can get a different rug then the one you have would work best in the "nook" of the couch. And, at very least, pull the couch away from the wall.
I would be tempted to put everything on the diagonal, with the couch's back toward the photographer, (although that means the "L" of the couch will have to be walked around), the TV in the opposite corner, and more color everywhere. I'd look for big, inexpensive, colorful floor pillows that could be stacked for "looks" but used for company.
I'd suggest moving the sectional so that the couch backs up to the windows. That way, the lounge part doesn't block the entrance to the living room.
Move the white chair to the right side of the fireplace (as you're facing the fireplace) and angle it into the room. Place ottoman in front of chair.
It's easier and more inviting to walk around a chair than to leap over the lounge. ;)