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A triple net lease is a lease agreement between a commercial property owner or manager and a tenant, commonly used for retail, industrial, and free-standing buildings. It involves the tenant being responsible for three key expenses, referred to as the "three nets": property insurance, real estate taxes, and common area maintenance. Typically, these costs are estimated yearly and included in monthly rent payments. At the end of the year, if actual expenses are lower than estimated, the tenant receives a refund; if higher, they pay the difference. Most tenants often request a cap on the triple net amount to manage costs effectively. Additionally, a free lease template is available for those interested.
