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A triple net lease is a lease agreement between a commercial property owner or manager and a tenant. It is commonly used for retail, industrial, and standalone buildings. The term "triple net" refers to the tenant's responsibility for three key expenses: property insurance, real estate taxes, and common area maintenance. These costs are typically estimated annually and included in the monthly rent. At the end of the year, if the actual costs are lower than estimated, the tenant receives a refund; if higher, the tenant pays the difference. Most tenants often request a cap on the triple net amount to limit their financial exposure.
