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A triple net lease (NNN) is a commercial lease agreement where the tenant is responsible for three primary expenses: property insurance, real estate taxes, and common area maintenance. This type of lease is commonly associated with retail, industrial, and free-standing buildings. The cost of these expenses is typically estimated annually and included in the rent, with potential adjustments at year-end. If costs are lower than estimated, the tenant receives a refund; if higher, the tenant must cover the difference. Tenants often seek to cap the total amount of these expenses to limit their financial obligations. The tutorial also provides a free lease template for those interested.
