A developer buys an empty lot next to a new light-rail stop expecting rents to rise once the station opens. This illustrates which principle of value?

Change refers to the dynamic nature of real estate markets and property values over time. While the developer's situation involves a change (the opening of the light-rail station), this choice does not specifically capture the essence of anticipating future effects on value. Therefore, while change is a factor, it does not directly describe the principle at play in this scenario.

The principle of contribution considers how much value an improvement adds to a property. In this case, while the new light-rail station may contribute to increased property values, the developer’s focus is on the anticipation of future rent increases rather than the direct contribution of the station to their property. Thus, this principle does not accurately reflect the developer's expectations.

The highest and best use principle involves determining the most profitable use of a property based on its potential. Although the developer may consider this when planning, their primary motivation in purchasing the lot next to the light-rail stop is the anticipation of future rent increases, not necessarily the highest and best use of the property itself. Thus, this option does not align with the developer's reasoning.