U.S. Office Vacancies Reach Five-Year High of 16.5%

Outside of government propped up sectors, it's ugly out there. Employment doesn't crash all by itself.

U.S. office vacancies rose to a five- year high in the third quarter according to property research firm Reis Inc.

Vacancies climbed to 16.5 percent from 13.7 percent in the year since Lehman Brothers oldings Inc. filed for bankruptcy.

Effective rents, the amount actually paid by tenants, fell 8.5 percent, the biggest year-over-year drop since 1995.