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A triple net lease is a type of lease agreement between a commercial property owner/manager and a tenant. This type of lease is common in retail, industrial, and free-standing buildings. In a triple net lease, the tenant is responsible for paying property insurance, real estate taxes, and common area maintenance, which are known as the "three nets." These expenses are typically estimated for the year and incorporated into the monthly rent. If costs are lower than estimated, the tenant receives a refund, but if they are higher, the tenant owes the difference. Most tenants will request that the triple net amount be capped.
