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A triple net lease is a type of lease agreement between a commercial property owner and tenant, commonly used with retail, industrial, and free-standing buildings. In this lease, the tenant is responsible for paying property insurance, real estate taxes, and common area maintenance, known as the three nets. These costs are estimated for the year and incorporated into monthly rent payments, with any differences settled at the end of the year. Tenants often request a cap on the triple net amount to limit potential extra costs.
