<ARTICLE> 5
<CIK> 0000842741
<NAME> JOHN HANCOCK REALTY INCOME FUND-III LIMITED PARTNERSHIP
       
                             
<PERIOD-TYPE>                   9-MOS
<FISCAL-YEAR-END>                          DEC-31-1998
<PERIOD-END>                               SEP-30-1998
<CASH>                                       3,313,838
<SECURITIES>                                   268,971
<RECEIVABLES>                                        0
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<CURRENT-LIABILITIES>                          648,685
<BONDS>                                              0
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<COMMON>                                             0
<OTHER-SE>                                  38,592,752
<TOTAL-LIABILITY-AND-EQUITY>                39,273,939
<SALES>                                              0
<TOTAL-REVENUES>                             3,628,424
<CGS>                                                0
<TOTAL-COSTS>                                  530,010
<OTHER-EXPENSES>                               874,267
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