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A triple net lease is a lease agreement between the owner or manager of commercial property and a tenant, commonly used for retail, industrial, and freestanding buildings. The term "triple net" refers to the three nets: property insurance, real estate taxes, and common area maintenance, for which the tenant is responsible. Expenses for these three nets are estimated yearly and included in monthly rent. At the end of the year, if actual costs are lower, the tenant receives a refund; if higher, the tenant pays the difference. Tenants often request that the triple net amounts be capped to limit their financial exposure.
