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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 stand for property insurance, real estate taxes, and common area maintenance. The tenant is responsible for paying these expenses, which are estimated for the year and incorporated into the monthly rent. At the end of the year, tenants may receive a refund if costs were lower than estimated, or owe more if expenses were higher. Many tenants request a cap on the triple net amount.
