Job growth directly relates to demand for commercial office space. As companies begin hiring again, demand for smaller office space is starting to pick up locally. 23 News Economic Reporter Kristin Burke finds out what types of companies are shopping for these spaces and what it will take for more of them to make the move.

When will the hundreds of empty storefronts and offices be filled? ... for months building owners and real estate experts have been searching for an answer.Right now there's some encouraging trends signaling activity is slowly picking up.

" Right now we have a fair deal of activity for people looking at office space."

Both new and existing businesses are responsible for the recent expansion,such as setting up shop in smaller spaces along Perryville Road.

"Half of them are probably coming from out of town and the other half are moving or downsizing and even increasing their office space."

" But there are some bigger movers and shakers with their eyes on much larger spaces on Rockford's east side. They include several new manufacturers and 2 new call centers that would bring over 1,000 jobs to the area."

We've got high unemployment so they come in here knowing the job market is here for them."

But looking and signing are two different things .

"They are looking at Elgin at Rockford at Madison so Rockford needs to put their best foot forward. "

Throwing up the welcome to business expansion will also depend on what concessions landlords are willing to make.

"The landlords are going to have to be real competitive in their rates. It's a tenants market so they have to realize they aren't going to get market rate as they existed 3 to 4 years ago."

In Rockford Kristin Burke 23 News Right Now.