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A triple net lease is a type of lease agreement between a commercial property owner or 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 in addition to the rent. The costs of these expenses are usually estimated for the year and incorporated into the monthly rent. At the end of the year, the tenant may receive a refund if costs were lower or owe more if costs were higher. Many tenants prefer to have the triple net amount capped to avoid unexpected expenses.
