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A triple net lease is an agreement between a commercial property owner or manager and a tenant, commonly used for retail, industrial, and freestanding buildings. In this lease, the tenant is responsible for three main costs, referred to as the "three nets": property insurance, real estate taxes, and common area maintenance. These expenses are typically estimated annually and incorporated into monthly rent payments. At the year's end, if actual costs are lower than estimated, the tenant receives a refund; if higher, they owe the difference. Tenants often request a cap on the triple net amount to limit their potential financial exposure. A free lease template is also available.
