7. Property and equipment, net

Property and equipment, net consists of the following (in thousands):


	March 31,		December 31,
	2019		2018
Office equipment	$	15,199	$	16,955
Laboratory equipment		63,339		61,697
Computer equipment		58,389		55,436
Land		10,068		10,122
Building and leasehold improvements		213,529		213,196
Operating lease right-of-use assets		24,334		—
Finance lease right-of-use assets		2,332		—
Construction in progress		64,598		65,576
		451,788		422,982
Less accumulated depreciation and amortization		(113,457)		(103,231)
Property and equipment, net	$	338,331	$	319,751

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 anticipate taking possession of the building and construction activities beginning in July 2019. As of March 31, 2019, we have recorded approximately $2.0 million in on site preparation, design and construction costs.

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 as of March 31, 2019, we have recorded approximately $55.8 million in costs for construction, ground preparation and architectural and engineering studies. We currently anticipate the facility to be completed in the second half of 2020.

As stated in Note 2, in January 2019, we adopted ASC 842, Leases, which changed the accounting and reporting of our lease activity. Although we do not have significant lease activity, we are the lessee of several contracts, including those to secure fleet vehicles, buildings and IT equipment. Our lease agreements do not contain any material residual value guarantees or restrictive covenants. Some of our building leases include options to renew for additional periods of up to five years and the exercise of these options is at our discretion. Our current lease liabilities are reflected in accrued and other current liabilities and our noncurrent lease liabilities are reflected in other liabilities on the condensed consolidated balance sheets. As of March 31, 2019 our lease liabilities are as follows (in thousands):


Current
Operating lease liabilities	$	10,245
Finance lease liabilities		815
Noncurrent
Operating lease liabilities		12,629
Finance lease liabilities		723
Total lease liabilities	$	24,412

The cash paid for amounts included in the measurement of our operating lease liabilities as of March 31, 2019 was $2.8 million in operating cash flows. The cash paid for amounts included in the measurement of our finance lease liabilities as of March 31, 2019 was $0.2 million in financing cash flows.

The maturity of our lease liabilities are as follows (in thousands):


	Operating		Finance
Remainder of 2019	$	8,793	$	886
2020		6,339		556
2021		4,242		195
2022		2,265		—
2023		1,602		—
After 2023		1,429		—
Total lease cash payments	$	24,670	$	1,637
Less: discount		1,796		99
Present value of lease liabilities	$	22,874	$	1,538

As of March 31, 2019, our finance and operating leases had a weighted average lease term of approximately 2.0 and 4.4 years, respectively. The discount rate of our leases is an approximation of an estimated incremental borrowing rate and is dependent upon the term and economics of each agreement. The weighted average discount rate of our operating leases and finance leases is approximately 4.7% and 6.6%, respectively. For the three months ended March 31, 2019, we incurred approximately $3.6 million of expense related to our operating leases, approximately $0.2 million of amortization on our finance lease right-of-use assets and a de minimis amount of interest expense on our finance lease liabilities. Rent expense for the three months ended March 31, 2018 was $3.3 million. For the three months ended March 31, 2019, the cost of our short term leases with a term less than 12 months was de minimis.