In a small space there may not be a place for a separate play room. But that doesn't mean a play area all their own isn't possible. Try creating a play nook, a corner or part of a room that holds toys, books, and art supplies.
Caitlin Creer Interiors: Expedit toy storage
if it's a multiple of 2 or 4, it's IKEA EXPEDIT: books organized ROY G BIV
Library shelves-don't put so low a toddler can climb.
Use 3m hooks. Target has a peg board kit in dollar section right now
Kids room or basement organization
spice racks as book racks
Love the idea of a few framed pieces with a wire to hang everything else (esp. 3D, textural, sculpture, etc) underneath.
Rain Gutter Book Shelves...I want this for my grandchildren's room.
IHeart Organizing: Reader Space: Toy Tastic Multi-Functional Family Space!