Have recently read Smolin's book "The Life of the Cosmos". In discussing his reaction to quantum entanglement, he says he eventually decided that space is an illusion, and that all particles in the universe are somehow in contact. He points out that physicists have long understood that there is no absolute space, contrary to what Newton thought, but just a set of relationships. So going somewhat beyond Smolin, I would theorize that God could take all the relationships we experience as space and recode them into correlations within a single immensely complex function that depends only on time, and a hypothetical intelligent observer existing as a component of this function could do the equivalent of looking around him/herself and experiencing space.
"There is another theory, which states that this has already happened." - Douglas Adams