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A triple net lease is a lease agreement between a commercial property owner or manager and a tenant. It is commonly used in retail, industrial, and freestanding buildings. The term "triple net" refers to the tenant's responsibility for three main expenses: property insurance, real estate taxes, and common area maintenance. Typically, these costs are estimated annually and incorporated into the monthly rent. At the year's end, if the actual costs are lower, the tenant receives a refund; if higher, the tenant owes the difference. Tenants often request a cap on the triple net amount to manage expenses. Additionally, a free lease template is available for those interested.
