The structural behaviour of beam-column joints plays a critical role in the seismic response of frame structures. In the case of steel rack systems, uprights (columns) are usually 3rd or 4th class open thin-walled cold-formed steel members according to Eurocode 3, as such, local buckling occurs before the plastic moment resistance (in the case of the 3rd class) or yield stress (4th class) is achieved. Beams are usually 1st or 2nd class, so they can form a plastic hinge with the rotation capacity required from plastic analysis without reduction of the resistance (1st class) or with a limitation on the rotation capacity due to local buckling (2nd class). For this reason, only beams and connections, which can be easily equipped with additional bolts to increase their structural performance, can provide a post-elastic behaviour with energy dissipation. This paper presents and develops a method capable of evaluating the rotational capacity, or ductility, required by beams and connections to perform a plastic design. The proposed approach allows for the failure mode of the structure to be predicted starting from mechanical properties of structural members, and it is valid for both service and seismic loads. The analytical method could be applied to different structural systems and materials; in the present work it is presented with reference to industrial pallet racks. Theoretical assessment herein of the required plastic rotation for beams and connections provides useful information for bolted connection design to increase capacity of the racks with minimal additional cost.