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A triple net lease is an agreement between a commercial property owner or manager and a tenant. This type of lease is common in retail, industrial, and free-standing buildings. The three nets refer to property insurance, real estate taxes, and common area maintenance, which the tenant is responsible for paying. The costs of these expenses are usually estimated for the year and included in the monthly rent. At the end of the year, any differences in costs are either refunded to the tenant or owed by them. Tenants often request for the triple net amount to be capped.
