If necessity is the mother of invention, then the absence of space is the father of good architecture. It is nothing short of amazing what can be down with limited square footage when the demand is high enough.
Specht Harpman Architects had an award, mostly-vertical volume to work with but managed to turn each indentation and extrusion in the space into a dual-purpose design opportunity.
The bed lofts out over the living room below, while the bathroom and a series of storage spaces are tucks under the staircase, yet these moves make it all feel more dynamic rather than cramped.
Of course, if all else fails, it never hurts to have a top-floor rooftop deck to walk out onto in Manhattan, either.