Property and equipment, net consisted of the following at December 31 (in thousands):


	2019			2018
Land	$	1,577		$	1,240
Equipment		20,225			15,437
Furniture, fixtures, and leasehold improvements		24,624			20,892
Computer hardware, software, and phone equipment		15,958			11,566
Buildings		13,272			8,145
Deemed assets from landlord building construction		-			22,752
Construction-in-progress		3,265			5,334
Property and equipment at cost		78,921			85,366
Less: Accumulated depreciation		(31,629	)		(33,111	)
Property and equipment, net	$	47,292		$	52,255

Depreciation expense was $8.4 million, $9.2 million and $8.6 million for the years ended December 31, 2019, 2018 and 2017, respectively.

In 2011, Medpace, Inc. entered into two multi-year lease agreements governing the future occupancy of additional office space in Cincinnati, Ohio. The Company assumed occupancy of both spaces during 2012 and began making lease payments at that time. The leases expire in 2027 and the Company has one 10-year option to extend the term of the leases. As of December 31, 2018, in accordance with the accounting guidance related to leases under ASC 840, the Company was deemed in substance to be the owner of the properties during the construction phase. The accounting guidance required that a lessee be considered the owner of a real estate project during the construction period if a related party of the lessee is an owner of the real estate. Given that a related party of Medpace made an equity investment in the lessor, Medpace was considered the owner of the property for accounting purposes during the buildings’ construction. Accordingly, the Company reflected the building and related liabilities as Deemed assets from landlord building construction (“Deemed Assets”) and Deemed landlord liabilities, respectively in the consolidated balance sheets. The Deemed Assets were being fully depreciated, on a straight line basis, over the 15-year term of the lease. As of December 31, 2019, in accordance with the accounting guidance related to leases under ASC 842, these leases have been classified as operating leases and the deemed assets have been removed. See Note 2 in the Notes to Consolidated Financial Statements for a description of the ASC 842 adoption entries.