We are currently living in a different city from my studio, a house that sits on a busy street in what has become the center of town that my wife and I are turning into a gallery and studio space. It's a slow process and we have been taking our time and involving lots of our artist friends to help and participate in the fun, my wife is a jewelry designer and we have invited other friends so far involved in oil painting, sculpture, jade carving and fashion design to join us. We are also designing a website to support the studio and artist network, 1515art.com, although the website is not active yet, it's designed and almost ready to go.
my studio uses about half the 3 car detached garage space patrician by a framed wall, but will eventually expand to the entire garage when i get a shed to store essentials (and junk) in. I also have a covered area just outside my studio sitting on a concrete pad that runs along side of the studio where i have my gas kilns set-up.
Developers just finished a brand new large retail center as the "Town Centre" directly across the street, so as you can imagine there is much street noise and activity... the reality is, mostly I don't hear it and when I do hear the commotion I don't mind and it doesn't bother me.
At times I do get a lot of visitors in the studio if friends are over or there is some event going on and sometimes the interruptions make work different. One of our friends is a fashion designer in San Francisco and was heavily involved in the International Fashion Week in San Francisco's China Town. She used our studio as a training area for about 30 of the fashion models for the week long event, now it's very difficult to complain about 30 beautiful Chinese fashion models popping in and out of the studio... but, a lot of the time (most) my studio stays as private as I need, sometimes a little to private and I consider joining another studio group or doing some more teaching just to add some balance.