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A triple net lease is a lease agreement between a commercial property owner or manager and a tenant. It is prevalent in retail, industrial, and freestanding buildings. The term “triple net” refers to the tenant's responsibility for three key expenses: property insurance, real estate taxes, and common area maintenance. These costs are typically estimated annually and included in the monthly rent. At the end of the year, if actual costs are lower, the tenant receives a refund; if higher, the tenant must pay the difference. Tenants often request a cap on the triple net expenses to manage financial risks. A template for a triple net lease is also available for free.