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A triple net lease is a contract between a commercial property owner and a tenant where the tenant is responsible for property insurance, real estate taxes, and common area maintenance. The costs of these three expenses are estimated for the year and added to the rent on a monthly basis. At the end of the year, the tenant may receive a refund if costs were lower or owe additional payment if costs were higher. Tenants often request a cap on the triple net amount to limit potential overages.
