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A triple net lease is a type of lease agreement between a commercial property owner and a tenant, commonly seen in retail, industrial, and free-standing buildings. 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. If costs are lower, the tenant receives a refund, but if higher, they owe the difference. Tenants often request a cap on the triple net amount.
