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A triple net lease is a type of commercial lease agreement where the tenant is responsible for property insurance, real estate taxes, and common area maintenance costs. These expenses are estimated for the year and included in the monthly rent. At the end of the year, if costs were lower, the tenant gets a refund, but if they were higher, the tenant owes the difference. Most tenants request a cap on the triple net amount to limit potential unexpected costs. Triple net leases are common in retail, industrial, and free-standing buildings.
