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A triple net lease is a lease agreement between a commercial property owner or manager and a tenant. This type of lease is commonly used for retail, industrial, and freestanding buildings. It involves three main responsibilities for the tenant, represented by the three "nets": property insurance, real estate taxes, and common area maintenance. Typically, the costs for these expenses are estimated annually and included in the monthly rent. At year-end, if actual costs are lower than estimated, the tenant receives a refund; if higher, the tenant pays the difference. Many tenants request a cap on the triple net amount to manage potential cost increases. A free lease template is also provided in the tutorial.
