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A triple net lease is a type of lease agreement between a commercial property owner/manager and a tenant. It is commonly used in retail, industrial, and free-standing buildings. The "three nets" refer to property insurance, real estate taxes, and common area maintenance, which the tenant is responsible for paying. These costs are estimated for the year and incorporated into the monthly rent. At the end of the year, any differences in cost are either refunded to the tenant or paid by them. Tenants often request to cap the triple net amount.
