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A triple net lease is an agreement between a property owner and a tenant for commercial property. This type of lease is common in retail, industrial, and free-standing buildings. The tenant is responsible for property insurance, real estate taxes, and common area maintenance, known as the three nets. The costs of the three nets are estimated for the year and included in the monthly rent. If costs are lower, the tenant gets a refund, and if higher, the tenant owes the difference. Most tenants will request the triple net amount to be capped.
