Home Office vs Nursery

Okay so it's not a fair fight. My wife and I are going to be having our first child in January are we are super excited. For us family is the most important thing in our lives, so having a child of our own is just awesome. Space is an issue though. Right now we live in a 2 bedroom townhouse at a little under 1,000 square feet. We have that second room that is going to be a nursery, the problem is right now it is business storage, supply room, and home office.  Or at least it was last week.  We've been sorting though our options that range from finding a bigger place to getting an altogether separate location for the business, and we've settled on staying where we're at and making everything fit. We organized everything,  filled other closets and now have a small desk in the living room for the business, and best of all we have a whole empty room in our home ready to be filled.