Mike,
No space is too small, and - - - - No space is ever big enough for what you want.
You could build a nice switching layout in that space. Or represent part of a branchline.
However, if you are not interested in operation, You could do a single or double track loop. I would stick with 54 or 60 inch radius so there is some straight track area to put in some switches and run some industrial siding into the corners.
Another option is a twice around folded figure 8. You put a crossover (diamond) at one end and of the room and fold one of the loops of the 8 inside the other. It can be scenicked as double track, but gives twice as much running room for one train.
