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A triple net lease is a type of agreement between a property owner and a tenant, commonly used in retail, industrial, and free-standing buildings. The lease requires the tenant to pay for property insurance, real estate taxes, and common area maintenance, known as the "three nets." These costs are estimated for the year and included in the monthly rent. At the end of the year, any differences in costs are refunded to or owed by the tenant. It is typical for tenants to request a cap on the triple net amount.
