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A triple net lease is a type of commercial lease agreement between a property owner and tenant. In this lease, the tenant is responsible for paying property insurance, real estate taxes, and common area maintenance in addition to rent. These costs are estimated for the year and included in the monthly rent. If the costs are lower, the tenant receives a refund; if higher, the tenant owes the difference. Many tenants request a cap on the triple net amount to limit potential expenses. Triple net leases are common in retail, industrial, and free-standing buildings.
