I've always wondered where we have our layouts located. I know one member dug out a 'basement' for his layout, mine is in a cove off a storage room, off a mud room. It's a little tight, but works.
A little back story - prior to my new baby boy's arrival 10 years ago (not a baby anymore) my father-in-law and I built a family room and mud room addition to our home. When he was coming up with the plans, he said 'you need to get those trains out of the garage and out of their boxes' - they only came out a Christmas - 'and run them'. So he planned for a notch or cove in the storage room portion that measured 5'x9' for a modest layout.