Renowned Higashi-Honganji temple is visible from Keihan Tatemono Co.’s rental space in Kyoto’s Shimogyo Ward. The room can accommodate up to three people. (Junichi Kamiyama)

KYOTO--Companies are clamoring to establish a presence in this globally renowned city, but rental office space is at such a premium that a months-long waiting list has become the norm.

Much of Kyoto's appeal lies in the fact that it boasts so many universities and research institutes, which means there is a wealth of talented people to hire.

Tight restrictions imposed on the height of buildings to protect the local scenery have created a huge shortage of available workplaces, especially in central areas so beloved of the tourists who have overrun the ancient capital.

Having decided to expand into central Kyoto, Osaka-based smartphone app maker Fenrir Inc. spent more than six months trying to find something suitable, according to Keiichi Totsuka, a senior official of the company.

Fenrir eventually found office space for 10 or so employees, and they started working there in April. The premises are a quick walk from the renowned Gion and Pontocho districts.

“As many students study design and information technology in Kyoto, we plan to hire more employees there,” Totsuka said.

College students account for 10 percent of Kyoto’s total population--one of the highest rates for leading Japanese cities--making it an obvious draw for businesses keen to employ the best brains.

Businesses also consider that having bases in the high-profile city will be advantageous in luring talent from overseas.

Tokyo-based chat app operator Line Corp. set up its new development center in Kyoto in June last year. The company made the move because it finds it increasingly difficult to hire non-Japanese engineers in the Tokyo metropolitan area.

“Many people view Kyoto as more appealing because they can experience Japanese culture and work in a more relaxed manner than in Tokyo,” said a public relations official of Line.

According to the company, 80 percent of 1,000 job applications for engineers at the newly opened office were from foreign nationals in and outside Japan.

A survey by real estate agency Miki Shoji Co. on office vacancy rates in urban areas found that only 1.42 percent of workplaces were being offered to businesses at the end of September, a rapid decline from 5.88 percent five years earlier.

The ratio is far lower than the 2-percent benchmark that means there effectively are no offices available, and the worst among 11 cities, including Tokyo at 1.64 percent, Osaka at 2.00 percent and Nagoya at 2.23 percent.

The severe office shortage is compounded by a situation that is unique to the historic city: buildings 31 meters tall or higher are in principle prohibited from being constructed in central Kyoto so as to protect the landscape dotted with temples, shrines and gardens.

As Kyoto witnesses an influx of foreign visitors, construction of hotels is being higher priority than that of office buildings because hotels are more profitable.

One possible option for companies hoping to open branches in Kyoto may be to lease small workplaces instead of opening full-blown offices.

It is precisely that shortage that has created a business opportunity for one firm that now rents out small office rooms.

Keihan Tatemono Co. on Nov. 1 started renting out 31 rooms in a building it owns in front of JR Kyoto Station, each capable of accommodating one to six people. The monthly rents start from 68,000 yen ($622), excluding tax.

“We are targeting companies that have given up opening full-fledged bases in Kyoto,” said Yoshiyuki Tanaka, an official of Keihan Tatemono.