Directly adjacent to the Fondaco were the Italian barracks (Quartieri Italiani). They were narrow vaulted spaces affording access to what was then the dry ditch and is now Agiostephaniton St. The upper vaulted section of the barrack building is founded on rock. The vaults are independent of each other and are not linked in any way.

These areas came into being when Venetians widened the wall, leaving openings that afforded access to the inclined curtain wall.

Shops and warehouses in Heraklion, 1900 - 1905 (G. Gerola, Vikelaia Municipal Library, Heraklion)