7. Property and equipment, net

Property and equipment, net consists of the following:


	September 30,		December 31,
	2018		2017
	(in thousands)
Office equipment	$	16,478	$	14,674
Laboratory equipment		60,117		48,807
Computer equipment		56,857		51,351
Land		10,112		5,350
Building and leasehold improvements		253,099		214,245
		396,663		334,427
Less accumulated depreciation and amortization		(95,896)		(74,664)
Property and equipment, net	$	300,767	$	259,763

In February 2018, we signed an agreement to rent a building in Morges, Switzerland for an initial term of 15 years, with multiple options to extend for an additional 20 years. The building will undergo extensive renovations prior to our occupation and, when completed, will serve as our new European headquarters. The new building will consist of approximately 100,000 square feet of office space. This building will allow for consolidation of our European operations that are currently located in Geneva and Lausanne, Switzerland. Building permits were granted by the local government authorities in September 2018, and construction activity began immediately thereafter. We are responsible for a portion of the renovation and construction costs, and are deemed, for accounting purposes, to be the owner of the building. As a result, we recorded the fair value of the building as a capital asset of approximately $15.8 million and a corresponding financing liability in accrued and other current liabilities on our condensed consolidated balance sheet at September 30, 2018. We also recorded approximately $0.7 million in construction costs as a capital asset and corresponding financing liability on our condensed consolidated balance sheet at September 30, 2018.

In July 2018, we signed an agreement to purchase land located within Y-PARC, Switzerland’s largest technology park in Yverdon. The land was purchased, in cash, for $4.8 million. Upon this parcel, we plan on constructing a large molecule production facility. Construction activity commenced in July 2018, and we have recorded approximately $20.2 million as of September 30, 2018 in costs for architectural and engineering studies and initial ground preparation. We currently anticipate the facility to be completed in the second half of 2020.