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A triple net lease is a lease agreement between a commercial property owner or manager and a tenant, commonly used for retail, industrial, and standalone buildings. The term "triple net" refers to the tenant's responsibility for three main expenses: property insurance, real estate taxes, and common area maintenance. These expenses are typically estimated annually and included in monthly rent. At the year's end, if the actual costs are lower than estimated, the tenant receives a refund; if higher, they must pay the difference. Tenants often request to cap the triple net amount to limit potential increases. Additionally, a free lease template is available for those interested.
