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A triple net lease is a type of lease agreement between a commercial property owner/manager and a tenant. It is common in retail, industrial, and free-standing buildings. The three nets refer to property insurance, real estate taxes, and common area maintenance, which the tenant is responsible for paying. Expenses are estimated for the year and included in the monthly rent. At the end of the year, any difference in costs is either refunded to the tenant or paid by them. Tenants often request a cap on the triple net amount.
