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A triple net lease is a lease agreement between a commercial property owner and a tenant, typically used for retail, industrial, and standalone buildings. The term "triple net" refers to the three primary expenses the tenant is responsible for: property insurance, real estate taxes, and common area maintenance. These costs are generally estimated annually and incorporated into the monthly rent. At the year's end, if actual costs are lower, the tenant receives a refund; if higher, they must pay the difference. Tenants often request a cap on these expenses to limit potential liabilities. A free lease template is also available for those interested.
