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A triple net lease is an agreement between a commercial property owner and a tenant. This type of lease is common in retail, industrial, and free-standing buildings. The tenant is responsible for paying property insurance, real estate taxes, and common area maintenance, known as the "three nets". These costs are estimated for the year and included in the monthly rent. At the end of the year, any difference in costs is refunded to or owed by the tenant. Most tenants request to cap the triple net amount.
