<ARTICLE> 5
<CIK> 0000842741
<NAME> JOHN HANCOCK REALTY INCOME FUND-III LIMITED PARTNERSHIP
       
                             
<PERIOD-TYPE>                   6-MOS
<FISCAL-YEAR-END>                          DEC-31-1997
<PERIOD-END>                               JUN-30-1997
<CASH>                                       2,826,409
<SECURITIES>                                         0
<RECEIVABLES>                                  238,618
<ALLOWANCES>                                         0
<INVENTORY>                                          0
<CURRENT-ASSETS>                             3,081,079
<PP&E>                                      33,353,075
<DEPRECIATION>                               5,063,868
<TOTAL-ASSETS>                              40,398,148
<CURRENT-LIABILITIES>                          454,236
<BONDS>                                              0
<PREFERRED-MANDATORY>                                0
<PREFERRED>                                          0
<COMMON>                                             0
<OTHER-SE>                                  39,943,912
<TOTAL-LIABILITY-AND-EQUITY>                40,398,148
<SALES>                                              0
<TOTAL-REVENUES>                             2,244,884
<CGS>                                                0
<TOTAL-COSTS>                                  298,181
<OTHER-EXPENSES>                               596,823
<LOSS-PROVISION>                                     0
<INTEREST-EXPENSE>                                   0
<INCOME-PRETAX>                              1,349,880
<INCOME-TAX>                                         0
<INCOME-CONTINUING>                          1,349,880
<DISCONTINUED>                                       0
<EXTRAORDINARY>                                      0
<CHANGES>                                            0
<NET-INCOME>                                 1,349,880
<EPS-PRIMARY>                                     0.46
<EPS-DILUTED>                                     0.46