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A triple net lease is an agreement between a commercial property owner and a tenant. It is commonly used for retail, industrial, and free-standing buildings. The three nets in the lease refer to property insurance, real estate taxes, and common area maintenance. Expenses for these nets are estimated for the year and included in the monthly rent. At the end of the year, tenants may receive a refund if costs were lower or owe more if costs were higher. Tenants often request a cap on the triple net amount to limit potential expenses.
