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A triple net lease is a lease agreement between the owner or manager of a commercial property and a tenant, commonly used for retail, industrial, and free-standing buildings. The term "triple net" refers to the tenant's responsibility for three expenses: property insurance, real estate taxes, and common area maintenance. Typically, these costs are estimated annually and incorporated into the monthly rent. At the end of the year, if the actual expenses are lower than estimated, the tenant receives a refund; if higher, the tenant pays the difference. Tenants often request that the triple net amount be capped to manage potential increases. A free lease template is available for those interested.
