If you're a local artist and looking for studio space, consider Industry City here in Sunset Park.
As it says on their website: "Industry City’s arts initiative occurs amidst the long established and still growing industrial and manufacturing community that preceded it."
Here is some availability:
735 rsf.........$800/month (#601)
2177 rsf.......$2400/month (#606)
812 rsf.........Rented (#503)
812 rsf.........Rented (#507)
812 rsf.........$965/month (#508)
812 rsf.........Rented (#509)
812 rsf.........$965/month (#510)
812 rsf.........Rented (#511)
1534 rsf.......$2,140/month (#505) (View of harbor and Manhattan)
1562 rsf.......Rented (#501)
1636rsf........$1,840/month (#504)
2598 rsf.......$3,300/month (#506) (View of harbor and Manhattan)
Leases processed before March 15, 2009 will include 2 months of free rent.
For more info about Industry City and application guidelines, go here.