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A triple net lease is a lease agreement between a commercial property owner and a tenant, typically used for retail, industrial, and free-standing buildings. It is referred to as "triple net" because the tenant is responsible for three main expenses: property insurance, real estate taxes, and common area maintenance. These costs are estimated yearly and included in the rent on a monthly basis. At the end of the year, if the actual costs are lower, the tenant receives a refund; if they are higher, the tenant must pay the difference. Tenants often request a cap on the triple net expenses to manage potential cost increases. Additionally, a free lease template may be available for those interested.
