I ran into an artilce on the web (http://realestate.msn.com/Buying/Article2.aspx?cp-documentid=6285435&GT1=10932) highlighting some sub-300 square foot units in larger metro areas.  They seem to be quite a hit in some circles, being targeted to traveling execs needing a crash pad, but also older police officers and seniors.

 Some troubles brought by local groups were concerns about congestion and the units not being family friendly (which was not the consumer-base targeted).  Aside from zoning, it looks as if the key to these units is the coupling of demiographic need with the know-how of making such as space livable.  Examples of that can be found here (http://www.apartmenttherapy.com/ny/fsbo/fsbo-304-west-10th-street-012064) and I was quite suprised.  There are links to other examples toward the bottom of the above linked page.  Providing high end finishing touches seems to help by catering to the demographics as well as having them turnkey.

Anyone out there work with these units?  Sale, resale, interior design, stagers, even buyers: I'd like to know more about your experiences.  Thanks.