Broward's population grew by an estimated 22.3% to 1.5 million people from 1990-99, with Palm Beach growing by 21.5% over the same time period to about 1.05 million.

"We have seen a lot of job growth in Broward in particular, with people moving in from other markets," Geraghty says.

In terms of barriers to entry, the company ranks South Florida as a highly competitive market because of the diminishing capacity of developable land.

Still, that suits the company just fine. The company considers its economies of scales strong enough to compete more efficiently in the market than most of its smaller competitors.

"The largest part of it is the economies of scale," Geraghty says. "We negotiate national contracts, for instance, on paint and carpet. So we can marginally keep our costs lower in comparison to our competition." He says, "You'll notice we also look to cluster our properties so we get the efficiencies of manpower in a submarket."

Along with efficiency in operations, the company has also created marketing programs that also capitalize on the company's economies of scale. Two of those programs are designed to gain tenant confidence and loyalty.

One program allows tenants to earn equity through their monthly rents. When the tenant is ready to move and buy a home, the company partners with local homebuilders to assign the equity accrued during the tenancy. Such a program encourages longer tenancy.

Another program provides discounts on fees and help with relocation costs when an Equity Residential tenant relocates from one market to one of the company's holdings in another market. This program ensures the company attracts a greater number of credit-worthy tenants.

"You've got to be able to compete, in terms of acquiring and developing properties in that open of a market," Geraghty says about South Florida. "You're competing with everyone else."