<ARTICLE> 5
<CIK> 0000842741
<NAME> JOHN HANCOCK REALTY INCOME FUND-III LIMITED PARTNERSHIP
       
                             
<PERIOD-TYPE>                   9-MOS
<FISCAL-YEAR-END>                          DEC-31-1995
<PERIOD-END>                               SEP-30-1995
<CASH>                                       3,268,269
<SECURITIES>                                         0
<RECEIVABLES>                                  177,069
<ALLOWANCES>                                         0
<INVENTORY>                                          0
<CURRENT-ASSETS>                             3,352,325
<PP&E>                                      33,353,075
<DEPRECIATION>                               3,611,954
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<CURRENT-LIABILITIES>                          840,468
<BONDS>                                              0
<COMMON>                                             0
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<OTHER-SE>                                  41,623,515
<TOTAL-LIABILITY-AND-EQUITY>                42,623,515
<SALES>                                              0
<TOTAL-REVENUES>                             3,094,888
<CGS>                                                0
<TOTAL-COSTS>                                  193,485
<OTHER-EXPENSES>                                     0
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<INCOME-TAX>                                         0
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<CHANGES>                                            0
<NET-INCOME>                                 2,091,693
<EPS-PRIMARY>                                     0.81
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