It's not really capitalism, but its late stage cancerous form, where businesses grow too big (too close to monopolies) and go unchecked, so the markets start to fail because the competition is killed.

I could be wrong, but I think property use restrictions are actually more of a socialist concept. When done right, they're meant to protect others (aka society, in general - not some businesses that don't like having competitors across the street) from various harms, such as emissions, noise, overcrowding or things like that. In other words, not about what goes on at some property, but what happens to the outside because of it. But as the uncontrolled abuse grew unchecked, it became something else entirely.

This stuff, together with non-competes and exclusivity agreements is something different. I don't know what it is, but it's neither capitalism nor socialism "as they were well-meant", but rather a weird amalgamation of perverted concepts from both, leading to both erosion of healthy markets (so, harming capitalism) and degradation of life quality (so, harming socialism).