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A triple net lease is a type of lease agreement between a commercial property owner/manager and tenant. It is commonly used for retail, industrial, and free-standing buildings. The "three nets" stand for property insurance, real estate taxes, and common area maintenance, which the tenant is responsible for paying. Costs are estimated for the year and incorporated into the rent, with potential refunds or additional payments at year-end. Tenants often request a cap on the triple net amount to limit potential additional costs.
