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A triple net lease is an agreement between a commercial property owner/manager and a tenant, commonly seen in retail, industrial, and free-standing buildings. In this type of lease, the tenant is responsible for property insurance, real estate taxes, and common area maintenance (the three nets). These expenses are estimated for the year and incorporated into monthly rent. At the end of the year, any difference in costs is refunded or owed by the tenant. Most tenants request a cap on the triple net amount.
