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A triple net lease is a type of lease agreement between a commercial property owner/manager and a tenant. It is commonly used for retail, industrial, and free-standing buildings. In this lease, the tenant is responsible for paying property insurance, real estate taxes, and common area maintenance, known as the three nets. These costs are estimated for the year and included in the monthly rent. At the end of the year, if costs were lower, the tenant receives a refund, but if higher, the tenant must pay the difference. Many tenants request a cap on the triple net amount.
