<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
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<BONDS>                                              0
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<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
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<INCOME-PRETAX>                                712,850
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<NET-INCOME>                                   712,850
<EPS-PRIMARY>                                     0.28
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