<ARTICLE> 5 <CIK> 0000842741 <NAME> JOHN HANCOCK REALTY INCOME FUND-III LIMITED PARTNERSHIP <PERIOD-TYPE> 3-MOS <FISCAL-YEAR-END> DEC-31-1996 <PERIOD-END> MAR-31-1996 <CASH> 2,916,497 <SECURITIES> 0 <RECEIVABLES> 156,739 <ALLOWANCES> 0 <INVENTORY> 0 <CURRENT-ASSETS> 2,983,113 <PP&E> 33,353,075 <DEPRECIATION> 4,026,787 <TOTAL-ASSETS> 41,776,354 <CURRENT-LIABILITIES> 280,457 <BONDS> 0 <PREFERRED-MANDATORY> 0 <PREFERRED> 0 <COMMON> 0 <OTHER-SE> 41,495,897 <TOTAL-LIABILITY-AND-EQUITY> 41,776,354 <SALES> 0 <TOTAL-REVENUES> 1,103,676 <CGS> 0 <TOTAL-COSTS> 108,168 <OTHER-EXPENSES> 282,658 <LOSS-PROVISION> 0 <INTEREST-EXPENSE> 0 <INCOME-PRETAX> 712,850 <INCOME-TAX> 0 <INCOME-CONTINUING> 712,850 <DISCONTINUED> 0 <EXTRAORDINARY> 0 <CHANGES> 0 <NET-INCOME> 712,850 <EPS-PRIMARY> 0.28 <EPS-DILUTED> 0.28