<ARTICLE> 5
<CIK> 0000842741
<NAME> JOHN HANCOCK REALTY INCOME FUND-III, LP
       
                             
<PERIOD-TYPE>                   3-MOS
<FISCAL-YEAR-END>                          DEC-31-1995
<PERIOD-END>                               MAR-31-1995
<CASH>                                       2,824,772
<SECURITIES>                                         0
<RECEIVABLES>                                  257,430
<ALLOWANCES>                                         0
<INVENTORY>                                          0
<CURRENT-ASSETS>                             3,037,628
<PP&E>                                      33,353,075
<DEPRECIATION>                               3,197,122
<TOTAL-ASSETS>                              42,046,190
<CURRENT-LIABILITIES>                          280,582
<BONDS>                                              0
<COMMON>                                             0
<PREFERRED-MANDATORY>                                0
<PREFERRED>                                          0
<OTHER-SE>                                  41,765,608
<TOTAL-LIABILITY-AND-EQUITY>                42,046,190
<SALES>                                              0
<TOTAL-REVENUES>                             1,081,082
<CGS>                                                0
<TOTAL-COSTS>                                   64,206
<OTHER-EXPENSES>                                     0
<LOSS-PROVISION>                                     0
<INTEREST-EXPENSE>                                   0
<INCOME-PRETAX>                                708,378
<INCOME-TAX>                                         0
<INCOME-CONTINUING>                            708,378
<DISCONTINUED>                                       0
<EXTRAORDINARY>                                      0
<CHANGES>                                            0
<NET-INCOME>                                   708,378
<EPS-PRIMARY>                                     0.27
<EPS-DILUTED>                                     0.27