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A triple net lease is a commercial lease agreement where the tenant is responsible for three main expenses: property insurance, real estate taxes, and common area maintenance, often referred to as the "three nets." This type of lease is common for retail and industrial properties. Typically, the costs of these expenses are estimated annually and included in the monthly rent. At the end of the year, if actual costs are lower than estimated, the tenant receives a refund; if higher, the tenant pays the difference. Tenants often request a cap on the triple net amount to limit their financial exposure. Additionally, a free lease template is available for those interested.
