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OCR Triple Net Lease Agreement

OCR Triple Net Lease Agreement

Aug 6th, 2022

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How to OCR Triple Net Lease Agreement

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A triple net lease is an agreement between a commercial property owner or manager and a tenant. This lease is prevalent in retail, industrial, and standalone buildings. The term "triple net" refers to the tenant's responsibility for three expenses: property insurance, real estate taxes, and common area maintenance. Typically, these costs are estimated annually and included in the monthly rent. At the year's end, if the actual costs are lower than the estimates, the tenant receives a refund; if higher, they owe the difference. Tenants often request a cap on their triple net expenses to prevent excessive costs.

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