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A triple net lease is a lease agreement between a commercial property owner or manager and a tenant. This type of lease is common in retail, industrial, and free-standing buildings. The "three nets" refer to the tenant's responsibility for property insurance, real estate taxes, and common area maintenance (CAM). Typically, the costs of these three nets are estimated for the year and included in monthly rent. At the year's end, if expenses were lower than estimated, the tenant receives a refund; if higher, the tenant pays the difference. Most tenants often request that the triple net amount be capped. Additionally, a free lease template is available for those interested.
