I inherited my parents garage, filled with 30 years of junk (note baby stroller boxes, Apple Computer boxes from late 80s/early 90s, and overall Jenga style box storage philosophy: stack and if you need to remove one, pray.)
Work bench was from hospital where my mother worked, they remodeled and didn't need it any more, so she cut it in half (is like 12 feet long) and threw it in the back of truck and plopped it in the garage. It's on the right in the pic below. It's actually nice; it has power outlets along the length and shelf for a boombox so I could play only the finest East Coast hip hop whilst slopping 20 year old Nissan parts together in a haze of WD-40, spray paint, and musty baby clothing.
With the S13 in there, when I was rebuilding/installing new engine/painting engine bay. If you look carefully, you can see the entire 80s decade in the background. Steezy 240SX fit right in.
It was a small garage, but I made do. The problem with small garages is that the car + a work bench still isn't enough room. I had to store new parts in the living room. House guests were not amused. And I used what I call the "floor store" technic frequently. Basically, you carefully set what you're working with on the floor, for later. When I popped the pistons out of my block I (successfully) used the floor store technique: I came back approximately 1 month later, and pistons were still on floor. The crankshaft I splurged a little and cleared a small space on the workbench. It was like in Halo when you have like a sniper and shotty and you want that BR but you only got two slots. That's what small garages are like.
The tools got kicked around the floor basically the entire time I worked on the car. And the only thing I used the workbench for with any amount of real purpose was doing the wiring harness for the swap.
Call me weird but I work better on the floor/on my feet than at a workbench. If I ever set up a shop from the ground up, my workbench will be very, very small. Like maybe a little desk. If you have a small garage the space is better spent on storage for tools and parts. Also I can't stand pegboards. That's like easy cheesy garage 101. I want my tools in big, manly metal box with drawers and shit, not hung on the wall with little hooks.
Basically if I was setting up a garage I'd have a tool box, a little cabinet for delicate parts, some jackstands, and a jack. SPACE is the most important tool in the garage.