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A triple net lease is an agreement between a owner/manager and a tenant for commercial property. Triple net leases are common in retail, industrial, and free-standing buildings. The "three nets" are property insurance, real estate taxes, and common area maintenance. Costs for these expenses are estimated and incorporated into the rent on a monthly basis, with any overages or savings settled at the end of the year. Many tenants request a cap on the triple net amount to limit potential additional costs.
