The Arcade is a new public lane on pivate land connecting South Yarra Station to Claremont Street and Chapel Street. It increases the pedestrian permeability through this emerging precinct, with the view to enriching the public domain. The desire is to create a laneway experience in the tradition of Melbourne City lanes, arcades and through block connections.

The lane is a public space facilitated over private land with the agreement of neighbouring owners. The resolution of the lane required innovative urban design initiatives in the private and public spheres.

The arcade provides an address for the finer grained services required to support the emerging residential and business population in the precinct.

The arcade reinstates the original permeability of the precinct. It also contemplates a future pedestrian link to the South Yarra Station with provision and clearances for escalators to connect over Yarra Street to a new ticketing and retail deck above the station. In 2013 when it opened it hosted the Melbourne Festival arts launch party.