Combining the two started at the planning stage. This was back when I was naïve enough to believe what the mfgs wrote regarding their products. Case in point “All cars and engines will work on R1” (I’m paraphrasing), which to me meant this would be enough of a staging yard.
R1 turnouts and curves should save quite a bit of space. Especially the 3-way turnouts.
The workshop set-up to go with that looked like this.
Reality regarding the staging tracks hit when testing started under operating conditions. one could pull any sequence of different cars through the R1 turnouts, but, by George, that sure would not work when backing the same cut of cars through the same turnouts.
But by then I had learned a few more “facts” about LS and it was time to rearrange things i.e. use handlaid turnouts and track. Which required "a bit of extra space and two “features” I didn’t want to consider before.
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A fold down extension of the tracks along the original axis, so as not to lose free access to the garage. All of that trackage used for the freight operation.
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A nod-under to bridge the gap from the existing location to the extension along the divider in the shop portion. Since the tracks are at 58.5" it is a nod-under for people of “average” height.
The extension, that is used for the passenger traffic, meant relocating the milling machine, but also resulted in extra wall space for more shelves.
Is there enough room for everything?
Not really 
:), having extra storage space for the structures that are in the garden would be very nice. There will be an extra shelf above the freight section (15" clearance) once all the track is finished and that should be a good start. That leaves the additional vertical free space way above the passenger section.
Whatelse is inside?
The dispatcher’s desk. I wrangled one corner of our Workout room for the purpose.
Nice and bright spot! For double checking purposes there are IP cams aimed at the layout.