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A triple net lease is a type of lease agreement commonly used for retail, industrial, and free-standing buildings. In this lease, the tenant is responsible for payments on property insurance, real estate taxes, and common area maintenance - the three "nets". The costs of these expenses are usually estimated for the year and incorporated into the monthly rent. At the end of the year, if the costs were lower, the tenant gets a refund, and if they were higher, the tenant owes the difference. Most tenants will request the triple net amount to be capped.
