As Rockford grew, the east side of the Rock River developed into a commercial district, featuring the post office and the first two hotels.

Also that year, the Galena and Chicago Union Railroad reached the east side of Rockford, built along the eastern riverfront, providing economic stimulus.

The commercial building at 324–30 East State Street is the lone remnant from this era that has not been substantially altered.

The paving of State Street in 1889 brought another wave of construction, including a building for the YMCA and the Germania Hall.

The ornate, Romanesque Revival YMCA hall dominated the east side for decades.