The greatest demand for these size spaces is in established neighborhoods. Ranging from the Upper West Side to the West Village to Cobble Hill. Perhaps a recent sale of mine explains it best...
708 Greenwich Street #4D (a 2-bedroom w/home office, 2-bath, 1300sf) was on the market for 10-days and had 15 offers. The list was 1.9M and it went $300,000 over the asking price.