<ARTICLE> 5
<CIK> 0000842741
<NAME> JOHN HANCOCK REALTY INCOME FUND-III LIMITED PARTNERSHIP
       
                             
<PERIOD-TYPE>                   3-MOS
<FISCAL-YEAR-END>                          DEC-31-1998
<PERIOD-END>                               MAR-31-1998
<CASH>                                       2,801,270
<SECURITIES>                                         0
<RECEIVABLES>                                  260,974
<ALLOWANCES>                                         0
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<PP&E>                                      33,353,075
<DEPRECIATION>                               5,686,115
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<CURRENT-LIABILITIES>                          386,071
<BONDS>                                              0
<PREFERRED-MANDATORY>                                0
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<COMMON>                                             0
<OTHER-SE>                                  39,011,303
<TOTAL-LIABILITY-AND-EQUITY>                39,397,374
<SALES>                                              0
<TOTAL-REVENUES>                             1,131,551
<CGS>                                                0
<TOTAL-COSTS>                                  115,995
<OTHER-EXPENSES>                               294,872
<LOSS-PROVISION>                                     0
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<INCOME-PRETAX>                                720,684
<INCOME-TAX>                                         0
<INCOME-CONTINUING>                            720,684
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<EXTRAORDINARY>                                      0
<CHANGES>                                            0
<NET-INCOME>                                   720,684
<EPS-PRIMARY>                                     0.30
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