<ARTICLE> 5
<CIK> 0000842741
<NAME> JOHN HANCOCK REALTY INCOME FUND-III LIMITED PARTNERSHIP

                             
<PERIOD-TYPE>                   12-MOS
<FISCAL-YEAR-END>                          DEC-31-1999
<PERIOD-END>                               DEC-31-1999
<CASH>                                       2,987,934
<SECURITIES>                                         0
<RECEIVABLES>                                  110,669
<ALLOWANCES>                                         0
<INVENTORY>                                          0
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<PP&E>                                      16,072,594
<DEPRECIATION>                               2,967,494
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<CURRENT-LIABILITIES>                          373,291
<BONDS>                                              0
<PREFERRED-MANDATORY>                                0
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<COMMON>                                             0
<OTHER-SE>                                  30,277,053
<TOTAL-LIABILITY-AND-EQUITY>                30,650,344
<SALES>                                              0
<TOTAL-REVENUES>                             5,936,231
<CGS>                                                0
<TOTAL-COSTS>                                  770,386
<OTHER-EXPENSES>                               794,755
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<INCOME-TAX>                                         0
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<CHANGES>                                            0
<NET-INCOME>                                 4,371,090
<EPS-BASIC>                                       1.66
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