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A triple net lease is a lease agreement between a commercial property owner or manager and a tenant, commonly used for retail, industrial, and free-standing buildings. The term "triple net" refers to the three key expenses that the tenant is responsible for: property insurance, real estate taxes, and common area maintenance. These costs are typically estimated for the year and included in the monthly rent. At year-end, if actual costs are lower than estimated, the tenant receives a refund; if higher, they owe the difference. Tenants often request to cap the triple net amount to manage expenses more effectively. A free lease template is available for those interested.
