<ARTICLE> 5
<CIK> 0000842741
<NAME> JOHN HANCOCK REALTY INCOME FUND-III LIMITED PARTNERSHIP
       
                             
<PERIOD-TYPE>                   9-MOS
<FISCAL-YEAR-END>                          DEC-31-1996
<PERIOD-END>                               SEP-30-1996
<CASH>                                       3,056,554
<SECURITIES>                                         0
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<OTHER-SE>                                  41,024,466
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<SALES>                                              0
<TOTAL-REVENUES>                             3,368,147
<CGS>                                                0
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