<ARTICLE> 5 <CIK> 0000842741 <NAME> JOHN HANCOCK REALTY INCOME FUND - III LIMITED PARTNERSHIP <PERIOD-TYPE> 9-MOS <FISCAL-YEAR-END> DEC-31-1999 <PERIOD-END> SEP-30-1999 <CASH> 3,718,069 <SECURITIES> 0 <RECEIVABLES> 241,281 <ALLOWANCES> 0 <INVENTORY> 0 <CURRENT-ASSETS> 3,959,350 <PP&E> 25,424,815 <DEPRECIATION> 5,242,806 <TOTAL-ASSETS> 31,939,941 <CURRENT-LIABILITIES> 710,388 <BONDS> 0 <PREFERRED-MANDATORY> 0 <PREFERRED> 0 <COMMON> 0 <OTHER-SE> 31,229,553 <TOTAL-LIABILITY-AND-EQUITY> 31,939,941 <SALES> 0 <TOTAL-REVENUES> 5,175,558 <CGS> 0 <TOTAL-COSTS> 1,118,245 <OTHER-EXPENSES> 0 <LOSS-PROVISION> 0 <INTEREST-EXPENSE> 0 <INCOME-PRETAX> 4,057,313 <INCOME-TAX> 0 <INCOME-CONTINUING> 4,057,313 <DISCONTINUED> 0 <EXTRAORDINARY> 0 <CHANGES> 0 <NET-INCOME> 4,057,313 <EPS-BASIC> 1.54 <EPS-DILUTED> 1.54