Property funds: target yield?

jon3001

Just came across this article:
http://www.thisismoney.co.uk/ask-an-expert/investing/article.html?in_article_id=429932&in_page_id=137

Remember one thing - in a sensible market the yield determines the true asset value. We have seen retail units purchased in the past with yields of just over 3%. In order for the true yields to get back to a level closer or better to cash, the capital value would need to drop by circa 45%. Do I think that can happen? In a sensible monetary world it most definitely could, and with the yields above under fire from potential exiting tenants, we may have further pressure.

I've no exposure to property funds ATM and am wondering about the conditions under which add them. The above implies that commerical property (B&M) funds may be showing value when the yield goes above 5%. Does anyone have an opinion on this? Has this figure been sustainable historically?

I'm not sure if the same yield applies to REITs (either here in the UK or abroad) since they have capital development projects as well as just straight rentals. It seems a lot of REIT funds have declined 25%+. At what point is anyone looking to get back involved if you've shied away from it in recent years?