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A triple net lease (NNN lease) is a lease agreement between a commercial property owner or manager and a tenant, commonly used for retail, industrial, and free-standing buildings. In this type of lease, the tenant is responsible for three specific costs, referred to as the "three nets": property insurance, real estate taxes, and common area maintenance. These expenses are typically estimated annually and included in the monthly rent. At the end of the year, if actual costs are lower than estimated, the tenant receives a refund; if higher, they owe the difference. Tenants often request to cap the total amount of these additional expenses. A free lease template is available for those interested.
