You are very lucky to have such space. I live in a two room apartment so have to craft wherever I have a spot. My craft items clutter my apartment pretty bad but I don't have the heart to throw it away.
I have an art room for fine art and calligraphy as well as writing penpal letters. Since we don't use the basement much, I just recently am moving all craft items in the basement as there's too much. I have a dedicated area there for sewing, airbrushing and painting with oils and acrylics but I don't do that too often.
I've got everything in a mess... some threads in a drawer, half-finished projects in a basket... others in a closet... I need to set up a small room to house the sewing machine, threads, fabrics... and my computer!! I always say it, but we haven't done it yet...