It all boils down to supply/demand...if similar units at nearby complexes are renting for that much, and that's what they are securing new renters for at your place, and the demand is sufficient that your unit wont sit vacant for long, there's probably not a lot of room in the price. If they know they can get a new renter quickly at the price they want and make 3500 more on that unit in the coming year they aren't going to care about losing the few weeks of rent in between, and as they are probably already turning over units all the time if it's a large complex, they are going to be pretty cost efficent at it (i'm assuming your monthly rent is less than 3500...if it's 5 or 6 grand or something the above statement might not be true). It's true that low turnover is generally better but not if you're going to leave money on the table over the course of the year from not getting market rent over what the vacancy/reconditioning cost would be. Here's what I would do:
1-Walk in as a prospective renter and check comps at similar places nearby. If they're the same quality place, equally desirable location, have availability etc, and are lower, bring that up in to them immediately, ask why they feel they can charge a premium over the comps, and say if they can't match then you'll move. You ACTUALLY have to be willing to move though.
2-Have a friend go into the leasing office of the place you live and inquire as a prospective renter for your size unit and see what they quote him, and see if there is immediate availability or not. If they quote something alot lower than what they want to bump you to and there's vacant units, they are probably trying to screw you and bank that you don't want to deal with the hassle of moving and will just go along with it. If they quote him something similar to what they want you to pay, or tell him there are no units available and there's a wait list, then the price is probably going to stick no matter what you try to do, if that's what they are securing new renters at that's what they want to try to bring all the units up to.
3-Dont worry about 'pissing them off'...they're a business, these aren't emotional decisions, and that very well may be their final offer depending on how strong their hand is, but it's always worth countering in this situation, it's extremely unlikely that just by countering they will give you the boot or something. Based on the research from the above 2 steps, throw out a counter offer of what you are willing to accept for an increase and see what happens. The worst they can say is no at which point you just need to decide whether to pay up or move on....but before doing so you need to make sure you can get a better value elsewhere, otherwise what's the point.
4-The suggestions of pre-payment or longer lease terms are good ones to throw out there in negotiations...I have given tenants a little better deal before in exchange for more stable/less risky terms for myself (but I'm just a guy renting out a house, don't know if a large apt complex has that flexibility).