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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 in retail, industrial, and free-standing buildings. The "triple net" refers to the tenant's responsibility for property insurance, real estate taxes, and common area maintenance. These costs are estimated annually and included in the rent. If costs are lower, the tenant gets a refund; if higher, they owe the difference. Tenants often request a cap on these expenses.
