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A triple net lease is an agreement between a commercial property owner and tenant where the tenant is responsible for property insurance, real estate taxes, and common area maintenance. This type of lease is common in retail, industrial, and free-standing buildings. The costs of the three nets are estimated for the year and included in the monthly rent. At the end of the year, the tenant may receive a refund if costs were lower or owe more if costs were higher. Tenants often request a cap on the triple net amount.
