At the recent Midwest Builders Show in Chicago, Norman W. Nagel, CPA, a partner with Warady & Davis LLP, told a builder audience the scarcity and price of land, and difficulty getting entitlements, are factors leading many Chicago area residential builders to seek opportunities in mixed-used projects.

"Some builders and developers may need to team up with commercial builders and retailers or other specialists in order to obtain mixed-use projects," said Nagel.

A lone builder, Nagel warned, may not be able to secure approvals unless the firm is a multi-faceted organization. And builders have to do what they do best. But mixed-use is a hot concept, Nagel stressed. "Many municipalities are looking to redevelop themselves and their downtown districts to better meet the needs of their community."