Every story has to have a setting, and the majority of them use a real place for it.
If you're writing about any sort of public place - a city, a town, a famous building, or whatever - I think you're on pretty safe ground.
If you're being more specific than that - say, if you're describing a specific house in your street - then you might cause problems with the person who actually lives there.
In a fictional story, I can't see any reason for doing that; if you really need to give an address in the story, you might as well make it up. Same applies to people (with the possible exception of world leaders, and so on, that might affect events in the story).
In a non-fiction work, you obviously need to use real events and real places, but you should be careful to only be specific about those that directly impact the story you're writing about.
With any use of real people, events or places, you do need to be scrupulously careful that your facts are accurate, to avoid any legal problems later on. It is also a good idea to talk to anyone likely to be affected by your writing if at all possible.
Hope that helps.
