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A triple net lease is a type of lease agreement between the owner or manager of a commercial property and a tenant, commonly used in retail, industrial, and free-standing buildings. The "three nets" refer to the tenant's responsibility for property insurance, real estate taxes, and common area maintenance. These expenses are typically estimated yearly and included in monthly rent payments. At the end of the year, if costs are lower than estimated, the tenant receives a refund; if higher, they owe the difference. Tenants often request a cap on the triple net amount to manage expenses. A free lease template is also available for those interested.
