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A triple net lease is an agreement between a commercial property owner or manager and a tenant, commonly used in retail, industrial, and freestanding buildings. It requires tenants to cover three key expenses: property insurance, real estate taxes, and common area maintenance, referred to as the "three nets." Typically, these costs are estimated annually and incorporated into monthly rent payments. At year-end, if actual costs are lower than estimated, the tenant receives a refund; if higher, the tenant pays the difference. Tenants often request that the triple net expenses be capped to manage potential costs. A free lease template is available for those interested.
