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A triple net lease is an agreement between a commercial property owner or manager and a tenant, typically used for retail, industrial, and free-standing buildings. In this lease, the tenant is responsible for three primary expenses—property insurance, real estate taxes, and common area maintenance—referred to as the "three nets." These expenses are usually estimated annually and included in the monthly rent. At year-end, if the actual costs are lower, the tenant receives a refund; if higher, the tenant pays the difference. Tenants often request a cap on the triple net amount to manage costs. The summary also mentions that a free lease template is available.
