Yep, as long as it's not structural and won't get soaked with water,
MDF is fine. Washers are a good idea under screws.
My basement shop is about 8'x10' right now, so I know storage and work
space are both at a premium. My walls are lined with hanging tools,
and both my "stationary" power tools (bandsaw and drill press) are on
lock-able wheels so they can snug up against walls when not in use.
The only thing I wish were different right now is to have space on the
right end of my workbench for crosscutting. Apparently the previous
owner was left-handed or clueless.
Anyway, enjoy your new shop,
Andy