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A triple net lease is an agreement between a commercial property owner/manager and tenant where the tenant pays for property insurance, real estate taxes, and common area maintenance. These costs are estimated for the year and included in the monthly rent. If actual costs are lower, the tenant gets a refund, if higher, they owe the difference. Most tenants request a cap on the triple net amount. Triple net leases are commonly used in retail, industrial, and free-standing buildings.
