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A triple net lease is a type of lease agreement between a commercial property owner and tenant. It is commonly used for retail, industrial, and free-standing buildings. In this lease, the tenant pays for property insurance, real estate taxes, and common area maintenance, known as the three nets. The costs of these expenses are estimated for the year and incorporated into monthly rent. At the end of the year, any overage or underage is adjusted with the tenant. Most tenants will request a cap on the triple net amount to limit potential increases.
