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A triple net lease is an agreement between a commercial property owner/manager and a tenant. It involves the tenant being responsible for property insurance, real estate taxes, and common area maintenance. Costs of the three nets are estimated annually and incorporated into the rent. If costs are lower, the tenant gets a refund, if higher, they owe the difference. Tenants often request a cap on triple net amount. Triple net leases are common in retail, industrial, and free-standing buildings.
