<ARTICLE> 5 <CIK> 0000842741 <NAME> JOHN HANCOCK REALTY INCOME FUND-III LIMITED PARTNERSHIP <PERIOD-TYPE> 3-MOS <FISCAL-YEAR-END> DEC-31-1997 <PERIOD-END> MAR-31-1997 <CASH> 2,781,553 <SECURITIES> 0 <RECEIVABLES> 197,936 <ALLOWANCES> 0 <INVENTORY> 0 <CURRENT-ASSETS> 2,995,541 <PP&E> 33,353,075 <DEPRECIATION> 4,856,452 <TOTAL-ASSETS> 40,609,826 <CURRENT-LIABILITIES> 404,865 <BONDS> 0 <PREFERRED-MANDATORY> 0 <PREFERRED> 0 <COMMON> 0 <OTHER-SE> 40,204,961 <TOTAL-LIABILITY-AND-EQUITY> 40,609,826 <SALES> 0 <TOTAL-REVENUES> 1,127,972 <CGS> 0 <TOTAL-COSTS> 180,120 <OTHER-EXPENSES> 297,930 <LOSS-PROVISION> 0 <INTEREST-EXPENSE> 0 <INCOME-PRETAX> 649,922 <INCOME-TAX> 0 <INCOME-CONTINUING> 649,922 <DISCONTINUED> 0 <EXTRAORDINARY> 0 <CHANGES> 0 <NET-INCOME> 649,922 <EPS-PRIMARY> 0.22 <EPS-DILUTED> 0.22