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A triple net lease is a lease agreement where the tenant is responsible for property insurance, real estate taxes, and common area maintenance. This type of lease is commonly used for retail, industrial, and free-standing buildings. The costs of the three nets are usually estimated for the year and incorporated into the monthly rent. If the costs are lower, the tenant gets a refund; if higher, the tenant owes the difference. Most tenants will request a cap on the triple net amount.
