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A triple net lease is a lease agreement between a commercial property owner/manager and a tenant. Triple net leases are common in retail, industrial, and free-standing buildings. The tenant is responsible for property insurance, real estate taxes, and common area maintenance. Costs are estimated for the year and included in the monthly rent. At the end of the year, any difference in costs is reconciled with the tenant. Tenants often request the triple net amount to be capped.
