<ARTICLE> 5
<CIK> 0000842741
<NAME> JOHN HANCOCK REALTY INCOME FUND-III LIMITED PARTNERSHIP
       
                             
<PERIOD-TYPE>                   12-MOS
<FISCAL-YEAR-END>                          DEC-31-1997
<PERIOD-END>                               DEC-31-1997
<CASH>                                       2,615,785
<SECURITIES>                                         0
<RECEIVABLES>                                  273,070
<ALLOWANCES>                                         0
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<BONDS>                                              0
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<COMMON>                                             0
<OTHER-SE>                                  39,251,625
<TOTAL-LIABILITY-AND-EQUITY>                39,595,199
<SALES>                                              0
<TOTAL-REVENUES>                             4,447,703
<CGS>                                                0
<TOTAL-COSTS>                                  670,885
<OTHER-EXPENSES>                             1,197,211
<LOSS-PROVISION>                                     0
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<EPS-PRIMARY>                                     0.88
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