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toybox,clothes,sand/waterbox ,kiddy pool,a slide or swing set thing ( you can put it outside and save room inside that way if you have a yard),easel or other art/drawing stuff,dvd(s) of kids shows.

Play doh, paints, books (for that bookshelf you may get), tell friends and family to get him clothes if he doesnt need any toys.

Something for outdoor play? Tricycle, a little slide, a small jungle gym, wont take up room in your house, and promotes outdoor play, We have decided that for our daughters 2nd bday we are buying her a kitchen, to promote pretend play. I remember my little brother had one, and it lasted him YEARS, he loved that, so we wanted to do the same for her, (however like you we are out of space! so some toys have to go) you could also buy him some bonds, starting a college or car fund for him, since at 2 he wont really remember when he;s older that you didnt buy him TONS of toys that he didn't need, and when he has that extra money saved up- he will be thankful when he's older. (the play gym and the slide are pretty $$$ brand new but we got some from craigslist pretty cheap and in great shape you might wanna check that out or some yard sales as ppl are trying to clear out their yards and garages) good luck, (and i just read that jenna said outdoor stuff first, lol should read before i type, but she has a point!)