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A triple net lease is a type of lease agreement between a commercial property owner/manager and a tenant, commonly seen 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 incorporated into monthly rent payments. At the end of the year, the tenant may receive a refund if costs were lower than estimated or owe the difference if costs were higher. Tenants often request a cap on the triple net amount to limit potential costs.
