Deloitte Real estate is announcing the results of it's London Office Crane survey this morning, and will confirm that London Office construction is the greatest since the financial crash, with activity three times what it was in 2010.

This has been driven by a resurgence of tenant demand, which has diminished the stock of Grade A space on the market and has readjusted the balance of power between landlord and tenant to some extent, with incentives drying up as putative tenants start to compete for the space.

Anthony Duggan, partner and head of research at Deloitte Real Estate, said: “The increase in construction and leasing transactions recorded in the latest survey reflects the improving sentiment being felt in the London office market. Importantly, a number of the ‘bellwether’ vacant schemes across London are now transacting, reducing the ability of potential occupiers to sit back and wait for conditions to improve. This is likely to add a little more urgency into the leasing market over the next few months.

“This positive sentiment is backed up by the latest Deloitte CFO Survey which recorded a ‘striking broad-based’ rise in confidence among the UK’s largest businesses. We believe that, barring any further major economic shocks, this rising optimism is likely to translate into increasing tenant leasing activity later this year and further new developments breaking ground.”

The West End is seeing the greatest development, particularly the area to the north of Oxford Street, though of course the big Land Securities developments in Victoria are also included in this category, and whilst their developments are speculative, that is not true of all. One third of the new space under construction is pre-let, reflecting the caution of recent times and lack of finance available for purely speculative schemes.

In the City there is 4.5 million sq ft under construction, up 10% since last November, and this space is starting to let, with the volume of lettings double what it was last year.

Crossrail is energising construction of office space around it's stations, so as well as the North Oxford Street area near Tottenham Court Road station, Midtown now has 722,000 sq ft going up around Farringdon station.

Kings Cross has 800,000 sq ft., which is a 68% increase since the last survey, thanks to Google and others tech companies moving there.

On the Southbank, to join the Shard, there is a further 982,000 sq ft under construction.